19th Jun 2015 10:26
LONDON (Alliance News) - Metminco Ltd Friday said it has received an updated mineral resource estimate for the Los Calatos Porphyry Complex in southern Peru, which has identified new and higher-grade copper development opportunities.
The miner said that, following the new detailed geological modelling of the complex, the total mineral resource has been upgraded to 352 million tonnes of ore at 0.76% copper and 318 parts per million molybdenum at a 0.5% copper cut-off.
Of the total mineral resource, 73 million tonnes of ore is classified as measured at 0.73% copper and 513 parts per million molybdenum, whilst a further 64 million tonnes at 0.73% copper and 345 parts per million molybdenum is classified as an indicated resource.
The inferred resource stands at 216 million tonnes at 0.78% copper and 245 parts per million molybdenum.
Metminco said the new estimate provides the potential for a "higher-grade, lower-tonnage copper mine" which will initially target 126 million tonnes at 1.03% copper and 351 parts per million molybdenum, which is all located in the modelled breccia units at the project.
Metminco is targeting to mine and mill 6.0 million tonnes of ore per year from the project, which in turn will produce 50,000 tonnes of copper.
"Capital costs for the more focussed, smaller, mining operation are expected to be approximately 50% lower, and the copper grade mined significantly higher, than those provided for by Runge Pincock Minarco in August 2013 for the larger tonnage mining scenario previously envisaged for Los Calatos. Mine life is expected to be greater than 20 years at these production rates," said Managing Director William Howe.
"Subject to the outcome of this new mining study, Metminco will advance the development of Los Calatos by commencing permitting and Feasibility and Environmental Impact studies as an important next step," he added.
The previous estimated mineral resource for Los Cantos was 493 million tonnes, amenable to open pit mining to a depths of 700 metres below surface, and 926 million tonnes amenable to underground block caving below that depth, totalling 1.4 billion tonnes at 0.47% copper and 0.022% molybdenum.
Metminco shares were up 0.7% to 0.272 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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