Minerandina-e Nº 597 (December 07th, 2009)
Transcripción
Minerandina-e Nº 597 (December 07th, 2009)
MinerAndina -e is a publication of MinerAndina, a communications company specialized on mining, gas and power Weekly Electronic Magazine Vol. XIV Nº597 December. 07th, 2009 If you are not subscribed and can periodically read MinerAndina-e this means you do not appreciate our effort and you are contributing to our disappearance. Index Mining Mining Alturas prepares itself to drill in Chapi Chapi-Utupara Pag. 533 Antamina’s expansion reaches US$380 million, according to Xstrata Pag. 533 MARKETS Pag. 535 IN BRIEF… IN BRIEF… Pag. 536 IIMP to modernize Model Mine of the Parque de Las Leyendas Pag. 538 EXPOMIN 2010 to be the biggest in its history Statistics Energy Production Electric Market in the Mining junior Alturas Minerals Corp., Toronto, hopes to raise funds of between C$1 million and C$2 million over the next 3 months, with the objective of financing a drilling program on its most advanced Chapi Chapi-Utupara copper-gold project in its profile, Paul Pearson, General Manager of the company, told MinerAndina –e. The junior mining company has 8 exploration projects in Peru. MINERANDINA INTERNATIONAL Chile Barrick and Kinross finalizes feasibility of Cerro Casale ALTURAS PREPARES ITSELF TO DRILL IN CHAPI CHAPIUTUPARA And seeks rare earths specialist, as well as new partners Pag. 541 Pag. 539 Pag. 542 Covering an extension of 10,000ha in the Antabamba province, Cusco, Chapi Chapi-Utupara is a merger of 2 projects as part of the risk sharing agreement between Alturas (80%) and Minera IRL, Jersey, (20%), operator of the Corihuarmi gold mine. Utupara is a copper-gold skarn porphyry and Chapi-Chapi is a Cu-Au exoskarn and endoskarn system. As such, Alturas Minerals has re-started its projects after the involuntary hiatus due to the impact of the 2009 international financial crisis and the credit restrictions on exploration companies. The subscription to MinerAndina is personal and its context is copyright and should not be passed to other either as forwarded e-mails, as photocopies or copy by other means EDITOR IN CHIEF: Maibí Montoya; TRANSLATION: ACTSpand Pts Ltd; ADMINISTRATION & ADVERTISING: Miryam Nikaido MinerAndina: Las Capironas 490 Urb Matellini Chorrillos (511)2519882 - (511) 2527406 [email protected] During this year, the company reduced its activities to the minimum, although it maintained its presence through road shows and communication links with potential investors. “Large mining companies already know that they have to act aggressively and quickly, as there are few advanced projects and those that are a little more advanced are going to be taken up”, commented Pearson, adding that the latter can still be found to be relatively cheap. In line with this, Alturas is preparing Chapi Chapi-Utupara for 15,000 meters of diamond drilling over an estimated time period of 18 months, after which it would be able to estimate inferred resources for the project. The coming campaign, which will be financed with the next capital fundraising, should cover the first 5,000 meters in approximately 20 exploration drill holes. For the time being, it has just discovered a new zone for drilling called Huarajo, where there is evidence of disseminated gold in quartzite. The project already has the main studies (geophysical, geochemical, trenches, mappings) and 5,000 meters of drillings. Among the best results obtained in the Utupara skarn, is a strip of more than 1gr/t Au and 1.5% Cu, according to Pearson. The executive estimates that in order to do a scoping study, they would need to drill at least 20,000 to 40,000 meters. To date, Alturas and Minera IRL have invested a total of US$3.8 million in the joint project, with US$3.3 million in Utupara and US$0.5 million in ChapiChapi. Alturas hopes to discover a big copper-gold porphyry under the skarn, similar to the Haquira project (Antares) that have also discovered world-class deposits like Tintaya, Los Chancas and Las Bambas contained in the copper-gold strip. “Tierras Raras” Pr Gd Ce La Sm Nd The second most attractive project for Alturas is the Huajoto high-sulfuration skarn system located in the province and region of Huancavelica. Besides containing zinc and gold, what is new in the project is the presence of rare earths (elements of column F in the Periodic Table). The main applications of these earths are currently in renewable energies, as well as in the manufacture of magnets, superconductors, lasers and high technology in general. “The main global producer of rare earths is China, but it has announced that it will restrict their export, putting the rest of world in a vulnerable position. It is very difficult to find rare earths projects in the world”, explained Pearson. He added that Huajoto is an intrusive and volcanic center similar to the large mineralized systems of Colquijirca and Cerro de Pasco, with high sulphidation gold, and zinc replacement, which is associated with rare earths that have revealed grades of between 0.25% and 1%. Huajoto was originally explored by Teck, who was searching for zinc and gold and is now in a JV with Alturas. In 2008, the Canadian junior drilled 2,000 meters, and did a lot of geophysical, mapping and geochemical studies with a total investment of US$1.6 million till date, having earned a 534 / Nov. 30th, 2009 65% of the project. Alturas converted Huajoto to a deposit with three production objectives – zinc, gold and rare earths. Before the end of the year, Teck will have to decide if it will abandon the stake that it has, or continue. Alturas’ plans in Huajoto would be to complete the analysis of all the exploration drill holes, and later to hire a rare earths specialist to evaluate the results. Based on this, it seeks for a partner, or direct investment. “There are already 3 companies that have displayed their interest in examining the data. In the next 3 months, we hope to have an announcement”, said the executive. The company’s strategy for Huajoto is based on the due diligence that it is presently carrying out on the Corina copper-gold project located 70km northeast of La Serena, in the IV Region of Chile. Alturas signed a letter of intent end November to purchase the property from its local owner, Mr. Francisco Schubert. According to the agreement, the junior has until 31 December to make a formal purchase offer. The concretization of the acquisition will be Alturas’ first step out of Peru, and forms part of its geographical diversification strategy. Meanwhile, the company is in talks with potential partners for its Callejones (Cu-Au), La Divina (Au-Ag) and Sombrero (Cu-Au) projects, situated in La Libertad, Lambayeque and Ayacucho respectively. Alturas has other JVs with third parties for the gold-silver Ccaccapaqui (Cia. De Minas Buenaventura) project, the San Antonio copper-zinc skarn (with Minera del Suroeste) and the Pampa Colorada copper-gold skarn, for which it is also looking for a partner. …go to index 535 / Nov. 30th, 2009 ANTAMINA’S EXPANSION REACHES US$380 MILLION, ACCORDING TO XSTRATA The 50,000 ton expansion in copper concentrate of the Antamina copper-zinc mine will require an investment of US$380 million, according to Charlie Sartain, CEO of Xstrata Copper, Brisbane, during his presentation in London last 3 December. Xstrata is one of the four partners of Cía. Minera Antamina. The other partners are BHP Billiton, Teck Cominco and Mitsubishi. The executive also confirmed that the approval to go ahead on this expansion project will be given before the end of this December, with only some details left to be confirmed. One of them was the investment that is required, which is much less than it had initially surpassed (US$1,000 million). st As such, Xstrata confirmed that the project’s construction will start in the 1 quarter of 2010 and last until the second semester of 2012. The plant is projected to be ready by the 4th quarter of 2012. The project is designed to increase the capacity of the concentrator plant by 38%, from 94,000 tpd to 130,000 tpd. This will allow the additional established reserves up to the previous year to be processed, which have increased the total reserves of the mine by 77% from 420 million tons to 745 million tons. Xstrata Copper, a division of Xstrata Group, is dedicated to the production, smelting and refining of copper in Peru and other 7 countries. Peruvian South Division to increase production by 445% Sartain pointed out that Xstrata’s División Sur del Perú will increase their copper production for the year 2015 by 445% due to the start up of the Antapaccay (Cusco) and Las Bambas (Apurímac) projects, which will provide 160,000 tons and 324,000 tons respectively. This means that División Sur del Perú will surpass the production of 110,000 tons with just 1 mine (Tintaya) to 600,000 tons with 3 operational mines. The participation and expansion of Antamina has not yet been taken into consideration. …go to index 536 / Nov. 30th, 2009 METAL MARKETS Commodities GOLD (US$/oz.tr) SILVER(US$/oz.tr) COPPER (US$/tonne) LEAD (US$/tonne) ZINC (US$/tonne) TIN (US$/tonne) METAL PRICES 2007 (1) 2008 (2) 697.1 872.3 13.4 15.0 7,139 6,959 2,594 2,088 3,257 1,880 14,492 18,455 2009 (3) 937.4 13.9 4,766 1,574 1,565 13,194 Last (4) 1161.3 18.5 7,026 2,301 2,354 15,130 (1) 2007 average price (2) 2008 average price (3) January-October 2009 average price (4) Closing price 04/12/09 Source: LMEX. NYMEX LIMA STOCK EXCHANGE Go to www.minerandina.com/datosbolsaI.html to view the stock prices of mining companies and juniors listed on the Lima Stock Exchange …go to index 537 / Nov. 30th, 2009 in brief… in brief … in brief … Copper The Government cancels Inca Pacific contract for Magistral Inca Pacific Resources Inc., Vancouver, a mining company that is developing the Magistral copper-molybdenum project in the Ancash Region, informed that the state company Activos Mineros SAC has decided to cancel its contract, arguing that the company has not fulfilled the US$3 million financing corresponding to the second investment year. Activos Mineros SAC is responsible for supervising and auditing privatization contracts of the above mining project. Inca Pacific stated that the Peruvian State is wrong in its assertions and has appealed against the decision. It will try to resolve the impasse and will evaluate its options to continue developing the project. Strait Gold obtains financing to explore Alicia Strait Gold Corporation, Toronto, a junior mining company that is exploring the Letra Rumi (Ancash) and Alicia (Apurímac) copper projects, announced that it has closed the first tranche of a private placement for C$268,900. These earnings will finance the exploration of the second project, which it recently acquired from Panoro Minerals, another junior. Tamerlane seeks financing for Los Pinos project Tamerlane Ventures Inc., Blaine (USA), a junior mining company that is exploring the Los Pinos copper project in Cañete (Lima), informed on its intention to carry out a private shares placement for C$1.1 million, which is 6,111,111 shares at a unit price of C$0.18 per share. The earnings will be used as working capital. Precious Metals Rio Alto raises C$6,136 million from Peruvian investors Rio Alto Mining Limited, Calgary (Canada), a junior mining company that is aiming to start the La Arena (La Libertad) gold oxides project, announced that it has completed a private shares placement on the Vancouver Stock Exchange for an amount reaching C$6,136 million, double the amount initially offered. The acquisition was made by Peruvian investors. The earnings will be designated for the project’s construction, with the objective of starting operations end 2010. Century Mining expects to raise US$54 million before Christmas Century Mining Corporation, Blaine (USA), a gold producer that operates the Lamaque (Canada) and San Juan (Arequipa) mines, reported that it is working hard on compiling the documentation that will allow it to take a bank loan of US$33 million. A private placement for US$21 million will be added to this. The company foresees that both operations will be completed before Christmas. The earnings will be used on the reopening of the Lamaque mine and on the announced expansion project of San Juan. San Juan produced 63,124 ounces and 14,252 ounces of gold in 2007 and 2008 respectively. Duran closes private placement for US$750,000 538 / Nov. 30th, 2009 Duran Ventures Inc., Toronto, a junior mining company exploring for base and precious metals in the Ancash Region, informed that it has completed the final tranche of a private placement reaching C$750,000. In this second and concluding tranche, the company raised C$495,000, which will be used in the exploration of its Aguila and Pasacancha projects in Peru. Andean American increases Invicta’s resources Andean American Mining, Vancouver, a junior mining company that is developing the Invicta and Sinchao gold projects in Lima and Cajamarca respectively, reported that it has received the updated resource report of Invicta. The report states that there is an increase of 35% of measured and indicated resources, lengthening the useful life of the mine to 5 years. According to the report done by Discover Geological Consultants, Inc., Vancouver, Invicta hosts 10.7 million tons @ 2.05 gr/t Au, 16.08 gr/t Ag and 0.43% Cu, in the measured and indicated categories. According to previous reports, it hosted resources of 7.9 Mt @ 2.11 gr/t Au in the same categories. All the resources have been established in the Atenea vein. Phosphates Lara pays royalties to Sprott Resources for Mantaro phosphate project Lara Exploration Ltd., Vancouver, informed that it has signed a Letter of Intent with Sprott Resource Corp., Toronto, to transfer 0.5% of royalties to it for the Mantaro phosphate project in the Junin Region. Lara will receive 50% of the stake that Sprott holds in the “Strategic Alliance” formed by both companies in November 2008. This Strategic Alliance operates in Brazil and Colombia, particularly on the Sergipe (Potassium) project north of Brazil, in a uranium prospect in Colombia, and within a portfolio of rock phosphate prospects in both countries. Production Peru continues to be the top global producer of silver and tellurium Henry Luna, director of Mining Promotion of the Ministry of Energy and Mines, reported that Peru will continue as the top producer of gold, zinc, tungsten, lead, bismuth, tellurium and indium in Latin America, and as the top global producer in silver and tellurium. He added that Peru has maintained its second position in zinc production and third position in copper production globally, similarly to 2008. The national metal production comes from 411 mining units. … and the number of junior mining companies in Peru reaches 100 Henry Luna also stated that there are 100 junior mining companies operating in Peru, coming from Canada, Australia, England, China and the United States. These companies search, prospect, and explore on 584 properties in different parts of the national territory. …go to index 539 / Nov. 30th, 2009 IIMP TO MODERNIZE “MODEL MINE” OF THE PARQUE DE LAS LEYENDAS Next February, the expansion and modernization work of the “Model Mine” of the Parque de Las Leyendas will begin, Anibal Campos, the President of the Institute of Mining Engineers of Peru, IIMP, said during the ceremony of the th 35 Anniversary for the creation of the Model Mine, in November 1974. The improvements will include the fitting out and construction of scale-models of the most significant mining works that occurred in the sector in the last few years – Antamina’s mining duct, Cerro Lindo’s (Milpo) seawater desalination plant and the San Jose water reservoir of Minera Yanacocha. These works will better inform on the benefits that are being offered in the mining sector to the populations and localities within the area of influence, and to the economy of the country. Presently, it is providing a lot of educational benefits through the simulation of an underground operation and an open pit model. The initiative of a Model Mine in the Parque de Las Leyendas came from Jorge Vargas Fernández, who was then an official from the Ministry of Energy and Mines. Presently, it is being managed by IIMP. …go to index 540 / Nov. 30th, 2009 MinerAndina International Chile BARRICK AND KINROSS FINALIZES FEASIBILITY OF CERRO CASALE Barrick Gold Corp., Toronto, the largest global gold producer, may decide to construct its Cerro Casale copper and gold project next year with a total investment of US$3,500 million. Barrick has just finalized the project’s basic engineering or feasibility study, indicated Igor Gonzales, a Peruvian, who is the vice-president of the gold company in South America. Barrick is an equal partner with Canadian firm Kinross Gold Corp (Toronto). Cerro Casale’s production – whose reserves have reached 23 million ounces of gold and 6,000 million pounds of copper – could reach 800,000 ounces of gold annually and 220 million pounds of copper. “The gold market is coming back very strongly”, said the executive. The project is located in the Third Region, in the central part of the north of Chile, and 145 km southeast of Copiapó city. The executive indicated that Barrick also hopes to formalize the purchase of the El Morro copper and gold deposit by next January from Swiss group Xstrata Copper Plc. for US$465 million. Both companies hope to present the technical details of the project’s final feasibility study in the first few months of 2010. The information will include the economic parameters and the recommendations for its development. Meanwhile, the companies will continue to apply for the permits and to develop the engineering work for the project. Barrick and Kinross are investing at least US$50 million in 2010 on support work and to advance the initiative. In April this year, the Regional Environmental Commission (Corema) of the Atacama Region gave their approval for the development of the extensive exploration program on Cerro Casale. More than US$9 million will be invested on this. …go to index 541 / Nov. 30th, 2009 EXPOMIN 2010 TO BE THE BIGGEST IN ITS HISTORY Santiago, 12 – 16 April 2010 To date: 85% of its space taken up More than 5000 brands from 35 countries 60,000m2 of total area With the participation of new countries like Italy, France and the United Kingdom, there are 960 companies that will be present in EXPOMIN 2010, one of the biggest expositions in Latin American mining. The expectations that come with every edition of EXPOMIN from the mining market will make this 11th edition the biggest in its history. Hence, with 5 months into preparations, EXPOMIN 2010 has 85% of its exhibition space already being taken up. EXPOMIN 2010 will be held at the Espacio Riesco Convention Center in Santiago, and it will receive some 60,000 professionals and more than 5,000 brands from 35 countries, and house more than 1,200 companies distributed across a space of 60,000m2. “In the last few years, Latin America has become the most significant metalproducing region in the world – as the main destination for project exploration and development investments and as the third focal point of world-class mining companies and suppliers, with many of them using Chile as a platform country. In this context, the challenge for 2010 is that EXPOMIN continues to be central to the global mining sector. We have the experience, a strong track record and most importantly, leading institutions from the sector that are participating and playing the main role in its development”, said Carlos Parada, Executive Director of EXPOMIN 2010. EXPOMIN has maintained its leadership position among mining expositions, a position that is earned by being a representative exhibition of available technological innovations and attracting all the industry suppliers that offer the widest range of products and services to optimize the extraction and production processes of copper. In the 10th edition of EXPOMIN in 2008, there was a record attendance of 51,000 professionals, 34,000 accredited, and business projections of US$1,300 million, which surpassed all expectations. …go to index 542 / Nov. 30th, 2009 Statistics Energy Production in the Electric Market (MW.h) Company January 2008 2009 1 EDEGEL S.A.A. 666,795 690,272 2 Electroperú S.A. 566,870 3 Energía del Sur S.A. Var% January - October Var% 2008 2009 4 6,837,636 6,602,671 -3 607,361 7 5,708,515 5,895,801 3 455,186 495,886 9 3,984,306 4,016,033 1 4 Duke Energy International 196,830 165,463 -16 1,940,890 1,766,033 -9 5 TERMOSELVA S.R.L. 111,624 112,873 1 1,014,859 916,780 -10 98,967 97,426 -2 873,729 954,824 9 61,819 66,055 7 580,899 455,607 -22 64,028 65,363 2 626,540 631,927 1 70,651 65,158 -8 784,538 622,236 -21 38,230 41,269 8 444,716 432,725 -3 55,583 35,750 -36 606,062 587,622 -3 247,985 175,677 -29 2,077,637 2,641,055 27 -0.6 25,480,326 25,523,313 0.2 6 Empresa de Electricidad de los Andes 7 Empresa Eléctrica de Piura Empresa de Generación Eléctrica Machupicchu 8 S.A. Empresa de Generación Eléctrica de Arequipa 9 S.A Empresa de Generación Electrica de Cahua 10 S.A. Empresa de Gerneración Eléctrica San Gabán 11 S.A. 12 Otros TOTAL 2,634,568 2,618,555 Source: Ministerio de Energía y Minas …go to index 543 / Nov. 30th, 2009