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 74 of 107 E&MJ • AUGUST 2018 73 MINING IN PERU send the ore to a toll milling facility for pro- cessing, generating cash flow for investors. Commercial production is expected in the third quarter of 2018. Will Ansley, CEO of Lupaka Gold, gave more details about the company's plans: "We intend to operate at an initial 350 mt/d. We have an initial mine plan which outlines a six-year mine life. By 2019, we will have another updated re- source with an expanded concept of between 500 and 1,000 mt/d. Investing in our own plant on-site would allow us to double or triple production." Meanwhile, in the Ancash region, Eloro Resources is completing its second phase of drilling at La Victoria, consisting of 4,000 meters. Tom Larsen, chairman and CEO of Eloro Resources, said: "At Phase I, we de- fined a significant low-sulphidation epither- mal system at the Rufina sector of La Victo- ria. Phase II will focus on newly discovered gold-bearing structures and how these are related in the different sectors." When first visiting La Victoria, the Eloro team was surprised by the fact that no mod- ern exploration had been done in the area, even though there was intense informal mining activity. A similar situation applies to another known gold region, the Puno oro- genic gold belt in south-eastern Peru, where Palamina has staked a significant land package, with an initial focus in the Coasa and Gaban projects. "There is a modern day gold rush underway in south-eastern Peru by informal miners that everybody is aware of, yet little to no modern day systematic exploration is under way," affirmed Andrew Thomson, president and CEO of Palamina. "No one truly knows how much gold is be- ing produced as large quantities cross the border and are sold to Bolivia." Thomson is confident that, albeit grass- roots, the Coasa and Gaban projects can be advanced fairly quickly, thanks to the team's experience in this belt, consisting of some former Minera IRL geologists who defined the Ollachea deposit in the area. Thomson continued: "At Gaban we have already iden- tified slate shear zones very similar to the mineralized shear zones at Ollachea, where gold occurs in quartz and the metallurgy is very straightforward. Much of the gold in the belt is associated with pyrrhotite and can be located through magnetic survey, so we are planning to fly the Gaban project area to identify the best targets." Finally, Miramont Resources, a company formed last year, has two main projects of focus: Cerro Hermoso, a gold, copper and poly-metallic breccia type prospect in Puno, where the company is undertaking an ini- Exploration work amounted to $556 million in Peru last year. Photo courtesy of AK Drilling.

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