SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
SEG 45 Final_qx4 - Society of Economic Geologists
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OCTOBER 2005 • No 63 <strong>SEG</strong> NEWSLETTER 39<br />
The previously reported positive feasibility<br />
study completed by Corriente<br />
Resources for the Mirador project in<br />
southeastern Ecuador <strong>of</strong> in-pit Indicated<br />
Resources <strong>of</strong> 111 Mt @ 0.67% Cu and<br />
0.22 g/t Au (at a cut<strong>of</strong>f <strong>of</strong> 0.4% Cu) continues<br />
to undergo optimization.<br />
Optimization studies include a recently<br />
completed two-stage infill drill program<br />
<strong>of</strong> some 11,850 m in 51 drill holes, a pit<br />
slope review, and inclusion <strong>of</strong> Ag revenue<br />
in the mine model. Recent drilling<br />
encountered high grade mineralization.<br />
Drill hole M116 reported 58 m @ 1.94%<br />
Cu and 0.33 g/t Au in enrichment, from<br />
58 m depth, and continued in primary<br />
mineralization with 269 m @ 0.66% Cu<br />
and 0.17 g/t Au. A new resource calculation<br />
incorporating this drilling and<br />
updated geological modeling is<br />
expected by the end <strong>of</strong> September.<br />
IAMGOLD continues to report infill<br />
and expansion drill results from its<br />
Quimsacocha project in south-central<br />
Ecuador. Results include hole 190 with<br />
59.3 m @ 5.1 g/t Au, hole 192 with 67.5<br />
m @10.3 g/t Au, hole 197 with 50.4 m @<br />
7.9 g/t Au, hole 210 with 54.8 m @5.3<br />
g/t Au, and hole 221 with 58.2 m @ 4.1<br />
g/t Au. The current drilling may be<br />
completed by August, at which time an<br />
independent resource estimate will commence<br />
with a presentation date <strong>of</strong> late<br />
fall.<br />
Metallurgical results reported by<br />
IAMGOLD for the Quimsacocha project<br />
indicate roughly 99% <strong>of</strong> gold and<br />
copper is extracted using a process <strong>of</strong><br />
pressure oxidation followed by cyanidation<br />
<strong>of</strong> the residue. In unoptimized<br />
floatation tests 94 to 97% <strong>of</strong> Au and 98<br />
to 99% <strong>of</strong> copper reported to the concentrate<br />
which treated with pressure<br />
oxidation and cyanide extracted 97% <strong>of</strong><br />
the gold.<br />
Recent drilling by IMC at its Rio<br />
Blanco project intersected high-grade<br />
mineralization <strong>of</strong> up to 151 g/t Au and<br />
647 g/t Ag over 1.2 m, in a newly discovered<br />
vein system following the<br />
drilling <strong>of</strong> some 1930 m in 13 drill<br />
holes. Drilling continues in this sector in<br />
order to develop an inferred resource.<br />
IMC has also completed some infill<br />
and condemnation drilling on the<br />
immediately adjacent Alejandra<br />
deposit and infrastructures areas for<br />
which the company will complete a feasibility<br />
study in January 2006.<br />
PERU<br />
Exploration activity for gold and copper<br />
in Peru continues at a strong pace<br />
despite the growing anti-mining sentiment<br />
in Peru led by left-wing NGO’s,<br />
very political church leaders, drug-traffickers,<br />
and political groups vying for<br />
higher pr<strong>of</strong>iles leading up to the next<br />
federal election in April 2006. The general<br />
widespread frustration, leaving the<br />
communities open to be swayed by the<br />
above mentioned groups, is largely due<br />
to the lack <strong>of</strong> perceived benefits for the<br />
regional communities from the mining<br />
operations as well as the federal governments<br />
and business community’s<br />
apparent lack <strong>of</strong> interest in the problem,<br />
to date, and refusal to pay attention<br />
to the underlying causes <strong>of</strong> the<br />
protests—inequality, frustration and a<br />
feeling <strong>of</strong> abandonment in the regions.<br />
All <strong>of</strong> these factors together are creating<br />
an environment <strong>of</strong> hostility toward<br />
mining and exploration companies.<br />
One can hope that the increased quantity<br />
<strong>of</strong> mining income tax and royalty<br />
funds available to the communities will<br />
be utilized for beneficial projects in the<br />
regions (infrastructure, etc.), and that<br />
the mining and exploration companies<br />
and federal government develop and<br />
carry out more proactive social and<br />
community relations programs.<br />
Drilling by Bear Creek Mining on its<br />
optioned Corani Ag-Au property continues<br />
to show encouraging silver (±<br />
lead-zinc) results with the second ninehole<br />
program returning an average <strong>of</strong><br />
109 g/t Ag over 52 m in all holes (up to<br />
62 m @ 128 g/t Ag, 48 m @ 156 g/t Ag<br />
and 127 m @ 93 g/t Ag). Previous holes<br />
included 78 m @ 130.6 g/t Ag and 52 m<br />
@ 102.6 g/t Ag. Mineralization has been<br />
outlined over a 1,300-m strike length<br />
and remains open in all directions.<br />
Trenching has identified new targets to<br />
the east. To date, Bear Creek has drilled<br />
3,000 m and drilling continues. Trench<br />
results to date include 120 m @ 115 g/t<br />
Ag and 132 m @ 50 g/t Ag. Bear Creek<br />
has also commenced a 500-m, threehole<br />
drill program at their optioned<br />
Pichacani Au-Ag prospect in southern<br />
Peru.<br />
Chariot Resources continues to come<br />
up with encouraging results on the<br />
Marcona Copper JV in southern Peru.<br />
Chariot has completed ~40,000 m <strong>of</strong> a<br />
55,000-m drill program in a 1.8 × 0.8<br />
km area. Latest results include 100 m @<br />
2.32% Cu, 40 m @ 4.19% Cu, 64 m @<br />
1.7% Cu, 36 m @ 2.4% Cu, 62 m @<br />
1.7% Cu, and 76 m @ 1.2% Cu in sulfides,<br />
as well as 102 m @ 0.87% Cu, 70<br />
m @ 1.3% Cu, and 60 m @ 1.1% Cu in<br />
oxides. Chariot hopes to have a new<br />
resource estimate completed by early<br />
fall and a scoping study done by the<br />
end <strong>of</strong> the year. The previous resource<br />
estimate is 218 Mt @ 0.80% Cu.<br />
Peru Copper continues to drill their<br />
Toromocho porphyry Cu project<br />
located in central Peru, having drilled<br />
~100,000 m in 180 holes. Previous operators<br />
drilled 42,394 m. Current global<br />
resource is 1.58 Gt @ 0.49% Cu, 0.015%<br />
Mo and 6.8 g/t Ag including a higher<br />
grade core <strong>of</strong> 818 Mt @ 0.64% Cu,<br />
0.022% Mo and 8.3 g/t Ag. Issues<br />
include metallurgy and social risk as<br />
the adjacent community <strong>of</strong> Morococha<br />
will have to be relocated. A new mineral<br />
resource and prefeasibility study is<br />
expected later in 2005.<br />
Phase two drilling (4,365 m in 13<br />
holes) by Candente Resource Corp.<br />
on their Cañariaco copper property,<br />
located in northern Peru, has expanded<br />
the area <strong>of</strong> mineralization to the south<br />
by 750 m. The mineralization remains<br />
open at depth and laterally. Assays<br />
have not been released yet. Phase 1<br />
Candente drilling (2,648 m in 12 holes)<br />
and previous drilling outlined a<br />
resource <strong>of</strong> 76.5 Mt @ 0.61% Cu and<br />
0.10 g/t Au (0.3% Cu cut<strong>of</strong>f) in a 400 ×<br />
400 m area. Xstrata is reporting positive<br />
results from the current drilling taking<br />
place on their Las Bambas Cu<br />
property located in southern Peru.<br />
Xstrata has completed 30,385 m in 132<br />
drill holes so far in 2005 and expects to<br />
complete 50,000 m by year end. Xstrata<br />
acquired Las Bambas from the Peru<br />
government for initial cash payments <strong>of</strong><br />
US$91M and further commitments.<br />
Social problems continue with several<br />
NGO’s threatening more action.<br />
Serious social problems continue at<br />
Monterrico Mineral’s Rio Blanco Cu-<br />
Mo porphyry property, located on the<br />
northern Peruvian border with Ecuador,<br />
with a couple <strong>of</strong> violent anti-mining<br />
protests having taken place recently.<br />
Monterrico has resumed drilling on the<br />
project as part <strong>of</strong> the ongoing feasibility<br />
study. The new indicated and inferred<br />
resource at Rio Blanco is 213 Mt @<br />
0.89% Cu and 0.022% Mo at 0.7% Cu<br />
cut<strong>of</strong>f. Rio Blanco has a global resource<br />
<strong>of</strong> 1.3 Gt @ 0.57% Cu and 0.022% Mo at<br />
a 0.4% Cu cut<strong>of</strong>f. Latest drilling by<br />
Quadra Mining on the Magistral Cu-<br />
Mo property located in northern Peru<br />
has returned up to 253 m @ 1.19% Cu<br />
and 0.062% Mo, 126 m @ 1.0% Cu and<br />
0.13% Mo, 140 m @ 082% Cu, and<br />
0.144% Mo and 142<br />
to page<br />
m @ 0.88% Cu and<br />
40 ...<br />
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