SEG 45 Final_qx4 - Society of Economic Geologists

OCTOBER 2005 • No 63 SEG NEWSLETTER 39
The previously reported positive feasibility
study completed by Corriente
Resources for the Mirador project in
southeastern Ecuador of in-pit Indicated
Resources of 111 Mt @ 0.67% Cu and
0.22 g/t Au (at a cutoff of 0.4% Cu) continues
to undergo optimization.
Optimization studies include a recently
completed two-stage infill drill program
of some 11,850 m in 51 drill holes, a pit
slope review, and inclusion of Ag revenue
in the mine model. Recent drilling
encountered high grade mineralization.
Drill hole M116 reported 58 m @ 1.94%
Cu and 0.33 g/t Au in enrichment, from
58 m depth, and continued in primary
mineralization with 269 m @ 0.66% Cu
and 0.17 g/t Au. A new resource calculation
incorporating this drilling and
updated geological modeling is
expected by the end of September.
IAMGOLD continues to report infill
and expansion drill results from its
Quimsacocha project in south-central
Ecuador. Results include hole 190 with
59.3 m @ 5.1 g/t Au, hole 192 with 67.5
m @10.3 g/t Au, hole 197 with 50.4 m @
7.9 g/t Au, hole 210 with 54.8 m @5.3
g/t Au, and hole 221 with 58.2 m @ 4.1
g/t Au. The current drilling may be
completed by August, at which time an
independent resource estimate will commence
with a presentation date of late
fall.
Metallurgical results reported by
IAMGOLD for the Quimsacocha project
indicate roughly 99% of gold and
copper is extracted using a process of
pressure oxidation followed by cyanidation
of the residue. In unoptimized
floatation tests 94 to 97% of Au and 98
to 99% of copper reported to the concentrate
which treated with pressure
oxidation and cyanide extracted 97% of
the gold.
Recent drilling by IMC at its Rio
Blanco project intersected high-grade
mineralization of up to 151 g/t Au and
647 g/t Ag over 1.2 m, in a newly discovered
vein system following the
drilling of some 1930 m in 13 drill
holes. Drilling continues in this sector in
order to develop an inferred resource.
IMC has also completed some infill
and condemnation drilling on the
immediately adjacent Alejandra
deposit and infrastructures areas for
which the company will complete a feasibility
study in January 2006.
PERU
Exploration activity for gold and copper
in Peru continues at a strong pace
despite the growing anti-mining sentiment
in Peru led by left-wing NGO’s,
very political church leaders, drug-traffickers,
and political groups vying for
higher profiles leading up to the next
federal election in April 2006. The general
widespread frustration, leaving the
communities open to be swayed by the
above mentioned groups, is largely due
to the lack of perceived benefits for the
regional communities from the mining
operations as well as the federal governments
and business community’s
apparent lack of interest in the problem,
to date, and refusal to pay attention
to the underlying causes of the
protests—inequality, frustration and a
feeling of abandonment in the regions.
All of these factors together are creating
an environment of hostility toward
mining and exploration companies.
One can hope that the increased quantity
of mining income tax and royalty
funds available to the communities will
be utilized for beneficial projects in the
regions (infrastructure, etc.), and that
the mining and exploration companies
and federal government develop and
carry out more proactive social and
community relations programs.
Drilling by Bear Creek Mining on its
optioned Corani Ag-Au property continues
to show encouraging silver (±
lead-zinc) results with the second ninehole
program returning an average of
109 g/t Ag over 52 m in all holes (up to
62 m @ 128 g/t Ag, 48 m @ 156 g/t Ag
and 127 m @ 93 g/t Ag). Previous holes
included 78 m @ 130.6 g/t Ag and 52 m
@ 102.6 g/t Ag. Mineralization has been
outlined over a 1,300-m strike length
and remains open in all directions.
Trenching has identified new targets to
the east. To date, Bear Creek has drilled
3,000 m and drilling continues. Trench
results to date include 120 m @ 115 g/t
Ag and 132 m @ 50 g/t Ag. Bear Creek
has also commenced a 500-m, threehole
drill program at their optioned
Pichacani Au-Ag prospect in southern
Peru.
Chariot Resources continues to come
up with encouraging results on the
Marcona Copper JV in southern Peru.
Chariot has completed ~40,000 m of a
55,000-m drill program in a 1.8 × 0.8
km area. Latest results include 100 m @
2.32% Cu, 40 m @ 4.19% Cu, 64 m @
1.7% Cu, 36 m @ 2.4% Cu, 62 m @
1.7% Cu, and 76 m @ 1.2% Cu in sulfides,
as well as 102 m @ 0.87% Cu, 70
m @ 1.3% Cu, and 60 m @ 1.1% Cu in
oxides. Chariot hopes to have a new
resource estimate completed by early
fall and a scoping study done by the
end of the year. The previous resource
estimate is 218 Mt @ 0.80% Cu.
Peru Copper continues to drill their
Toromocho porphyry Cu project
located in central Peru, having drilled
~100,000 m in 180 holes. Previous operators
drilled 42,394 m. Current global
resource is 1.58 Gt @ 0.49% Cu, 0.015%
Mo and 6.8 g/t Ag including a higher
grade core of 818 Mt @ 0.64% Cu,
0.022% Mo and 8.3 g/t Ag. Issues
include metallurgy and social risk as
the adjacent community of Morococha
will have to be relocated. A new mineral
resource and prefeasibility study is
expected later in 2005.
Phase two drilling (4,365 m in 13
holes) by Candente Resource Corp.
on their Cañariaco copper property,
located in northern Peru, has expanded
the area of mineralization to the south
by 750 m. The mineralization remains
open at depth and laterally. Assays
have not been released yet. Phase 1
Candente drilling (2,648 m in 12 holes)
and previous drilling outlined a
resource of 76.5 Mt @ 0.61% Cu and
0.10 g/t Au (0.3% Cu cutoff) in a 400 ×
400 m area. Xstrata is reporting positive
results from the current drilling taking
place on their Las Bambas Cu
property located in southern Peru.
Xstrata has completed 30,385 m in 132
drill holes so far in 2005 and expects to
complete 50,000 m by year end. Xstrata
acquired Las Bambas from the Peru
government for initial cash payments of
US$91M and further commitments.
Social problems continue with several
NGO’s threatening more action.
Serious social problems continue at
Monterrico Mineral’s Rio Blanco Cu-
Mo porphyry property, located on the
northern Peruvian border with Ecuador,
with a couple of violent anti-mining
protests having taken place recently.
Monterrico has resumed drilling on the
project as part of the ongoing feasibility
study. The new indicated and inferred
resource at Rio Blanco is 213 Mt @
0.89% Cu and 0.022% Mo at 0.7% Cu
cutoff. Rio Blanco has a global resource
of 1.3 Gt @ 0.57% Cu and 0.022% Mo at
a 0.4% Cu cutoff. Latest drilling by
Quadra Mining on the Magistral Cu-
Mo property located in northern Peru
has returned up to 253 m @ 1.19% Cu
and 0.062% Mo, 126 m @ 1.0% Cu and
0.13% Mo, 140 m @ 082% Cu, and
0.144% Mo and 142
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m @ 0.88% Cu and
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