Engineering & Mining Journal

AUG 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 72 of 107 E&MJ • AUGUST 2018 71 MINING IN PERU According to Kelley, it should take Chaka- na two years to go through all the pipes, but this year they could have an initial resource estimate already. He added: "Because Sole- dad does not have a large footprint, it does not present the environmental and social im- pacts of a huge low-grade deposit that takes years to drill out. It is a very compact project in a good mining area. We can move along quickly, which is very important in a cyclical industry like mining." Meanwhile, Panoro Minerals continues its exploration efforts at its flagship Cotabambas project. On the M&A front, the company re- cently sold the Kusiorcco property to Hud- bay Minerals for US$5 million plus a 2% net smelter royalty (NSR), and now it would also like to divest its Antilla project, for which an updated preliminary economic assessment (PEA) has been released. Luquman Shaheen, president and CEO of Panoro, provided some highlights about An- tilla: "As an investment option it is low-risk because the capital cost, at only US$250 million, is low. Moreover, the net present value of the project is higher than the capital cost, the capital intensity and the cash costs are low, the footprint is small, and no com- munity relocations are required. 98% of the resource that is in the mine plan is already at the indicated category, therefore minimal in- fill drilling is required, so there is as a shorter runway to feasibility and development." With regard to Cotabambas, the company is focused on testing satellite targets. "There is great potential for the project to see a sig- nificant increase in higher-grade resources and oxide resources […] Following this, the next step will be the skarn mineralization lo- cated in Cluster 2," Shaheen concluded. Finally, privately-owned Pembrook Cop- per continues advancing its Pecoy copper project in southern Peru, with a current re- source of 644 million mt at 0.334% Cu, using a 0.25% Cu cut-off grade. Pembrook owns 51% of the project and can get to 80% ownership by completing a feasibility study and making a cash payment. The company is currently focusing on the engineering stud- ies at a preliminary economic assessment level. "We hired several engineering compa- nies to complete a power line study, a road study for access to the coast, a water well study that has provided positive results for a pumping station from the gravels, and a tailings and waste dump study. What is re- maining is the pit scheduling, which will be done over the next months," explained Brian Booth, president and CEO of Pembrook Cop- per. In parallel to this, the company is also exploring a second porphyry copper project in the same area, called Tororume, which is 100%-owned by Pembrook. Zinc In the zinc space, Tinka Resources updated its NI 43-101 resource estimate for Ayaw- ilca, its flagship project in the department of Pasco, central Peru, which provided a 130% increase in the zinc resource. The new resource consists of 42.7 million mt with 5.6 billion lb of zinc content (2.5 mil- lion mt zinc) as well as some indium, silver and lead. In 2018, Tinka is set to complete a 15,000-meter drilling campaign and will Luquman Shaheen, president and CEO, Panoro Minerals. Exploration team at AntaKori. Photo courtesy of Regulus Resources.

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