Engineering & Mining Journal

SEP 2018

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REGIONAL NEWS - LATIN AMERICA 16 E&MJ • SEPTEMBER 2018 www.e-mj.com lies 50 kilometers (km) south of Magellan's SDA Flotation Plant at Acaponeta, Nayarit State. Magellan intends to advance El Do- rado toward production as a matter of pri- ority. The company has initiated permitting and is in the process of selecting an under- ground mining contractor. The project has excellent road and rail infrastructure, and the company plans to truck the ore from El Dorado to the SDA Plant for processing. El Dorado is situated within a district of epi- thermal vein systems from which historic mining produced high grades. "Drilled resources at El Dorado appear to represent a readily available source of feed for our SDA Mill," said Pierce Car- son, Magellan's CEO. "If confirmed, these resources could supply ore to the mill for approximately five years at a mining rate of 100 metric tons (mt) per day. In addition, the geology is prospective for extensions of mineralization and for new discoveries." "Acquisition of El Dorado is a key step in our strategy of initiating and then in - creasing production through the mill," Carson continued. "To achieve these ob- jectives, we are considering all financing options, including joint development with a suitable partner." Commencement of mining will depend on a number of preconditions, the most important of which include obtaining en- vironmental and blasting permits, select- ing and mobilizing a mining contractor and procuring financing. An access and land use agreement with the local ejido already is in place. Once development be- gins, ore will be accessible with a minimal amount of underground development. Ore will be sourced initially from the shallow, upper portions of the mineralized veins. Equinox Gold Spins Out Copper Assets Equinox Gold has formed a new compa- ny, Solaris Copper, to house its interests in three projects in Latin America: its Warintza copper-molybdenum project in Ecuador, its 60% interest in the La Verde copper-silver project in Mexico, and its Ricardo copper property in Chile. Equinox, which is headquartered in Vancouver, British Columbia, Canada, will now focus its attention on bringing its two advanced gold projects into production: the Aurizona gold mine project in Brazil and the Castle Mountain gold mine proj- ect in California. Aurizona is on track to pour its first gold before the end of 2018, and Castle Mountain Phase 1 is targeted for commissioning by the end of 2019. The Warintza porphyry copper-molyb- denum project in southeast Ecuador is lo- cated in a corridor of mineralization that hosts numerous exploration and develop- ment-stage projects that include copper, copper-gold, copper-molybdenum, and/ or high-grade gold mineralization. The property encompasses 22,676 hectares and currently hosts an inferred resource of 1.8 billion lb of copper. The limits of known mineralization have not been de- fined. Drilling to date totals 6,500 m in 33 holes and has tested only a small por- tion of the property. The La Verde property is located in Mi- choacán state, Mexico, 320 km west of Mexico City. Ownership is now 60% Solar- is and 40% Teck Resources. A 2012 tech- nical report estimated measured resources at 57.7 million mt grading 0.45% copper for 570.7 million lb of contained copper and indicated resources at 350.4 million mt grading 0.40% copper for 3.1 million lb of contained copper. Total drilling to date is 114,824 m in 641 holes. No ad- ditional exploration has been planned for 2018. Solaris and Teck are considering potential next steps for the property. The Ricardo copper-molybdenum exploration prospect is located in the Chuquicamata mining district of northern Chile. Equinox acquired its 100% inter- est in the property in April 2013, with the objective of exploring for copper-mo- lybdenite porphyry deposits and related supergene mineralization. The principal target is the faulted offset of the Chuqui- camata deposit, which lies at depth under post mineral cover in the southern portion of the property. In the recent past, Equi- nox has said it expected to explore the property with a senior partner, allowing the company to participate in exploration upside at the property while minimizing exploration costs. Panoro to Expand Drilling Program in Peru The Peruvian Ministry of Energy and Min- ing (MEM) has approved a second mod- ification to the semi-detailed Environ- mental Impact Assessment (EIA) for the Cotabambas project, located in the region of Apurímac, according to owner Panoro Minerals. With this approval, the com- pany will be able to carry out exploration activities on 2,923 hectares. The exploration campaign was suc- cessfully completed in April, with a to- tal of 2,172 meters drilled. Phase two should start soon, according to Panoro. Inca One Acquires Koricancha Plant in Peru Inca One Gold Corp. has finalized the pur- chase of Anthem United Inc., which owns a 90.14% interest in the Koricancha ore pro- cessing facility in Peru, from Equinox Gold Corp. and certain minority shareholders. The total purchase price for the Koricancha ac- quisition was approximately C$16.3 million. "The Koricancha Mill is a strategic and transformative acquisition for Inca One," said Edward Kelly, president and CEO, Inca One. "It instantly increases our footprint in Peru and allows us to grow our sales and earnings without significant and time-consuming capital spending and delays in permitting." The Koricancha Mill is a custom-built, fully operational, industrial gold ore pro- cessing facility, featuring a carbon-in-leach gold circuit, strategically situated in the Arequipa region. Located at sea level, 10 minutes from the Pan American Highway, and within the Nazca-Ocona gold belt in southern Peru, it is built out and permitted for 350 metric tons per day (mt/d) and has been operating at an average of approxi- mately 135 mt/d since January. It has been servicing the small-scale mining sector of Peru for three years and has a stockpile of material currently being processed. Acquiring the 350-mt/d Koricancha plant (above) will allow Inca One to grow gold production.

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