Stewart R. Wallace — 1919–2009 - Society of Economic Geologists

JULY 2009 No 78 SEG NEWSLETTER 47
several anomalies in the country rocks
up to 2 km away from the main vein. A
second survey focused on the identified
anomalies covering an area of about 15
km 2 confirmed the presence of a major
gold anomalous zone about 5 km
north-south and up to almost 2 km
wide centered on the vein system and
extending beyond the vein into the
country rocks on either side. Soltera
believes that these structural controlled
anomalies suggest that gold is dispersed
throughout the host rocks forming
important exploration targets for possible
open-pit mineralization.
In Argentina`s Catamarca province,
Yamana Gold is in the final stages of
getting environmental approval for its
Agua Rica copper-gold project.
Yamana acquired Agua Rica when it
took over Northern Orion Resources in
2007. The property contains 21.8 billion
pounds of copper and 13.3 Moz of gold.
Agua Rica sits close to Xstrata Plc’s Bajo
la Alumbrera mine, in which Yamana
owns a minority stake.
In the southernmost Argentina Santa
Cruz province, Minera Andes’ San José
mine raised its output in the first quarter
to 1.30 Moz silver and 16,560 oz
gold, from 968,00 0oz silver and 12,140
oz gold. The mine’s cash costs in the
recent period has dropped 28% and
21%respectively to US$4.99/oz silver
and US$357/oz gold. Minera Andes also
started drilling at its Celestina and
Martes 13 gold exploration projects.
The company said it will explore 10 epithermal
veins at Celestina and carry
out a 1,500 to 2,000-m drilling program
at Martes 13 focusing on recently identified
targets.
Pan American Silver has officially
inaugurated its Manantial Espejo goldsilver
mine. The company expects
Manantial Espejo to churn out 4.3 Moz
of silver and 60,000 oz of gold in 2009
with an estimated mine life of 10 years.
The mine poured its first gold-silver doré
in December, and has produced
415,000 oz silver and 7,000 oz gold
through February 2009.
CHILE
After more than a year of negotiations,
the governments of Chile and
Argentina reached an agreement on
tax regime and key permits for Barrick
Gold`s Pascua Lama project, which sits
in the border of the two countries.
Crushing will take place in Chile, and
processing in Argentina. Water for the
operation will come primarily from
Argentina. Pascua Lama has reserves of
18 Moz Au and 718 Moz Ag for its estimated
25-year mine life. Start up capex
now stands at US$2.8 to 3 billion.
In the Maricunga gold belt of northern
Chile, Exeter Resources has
updated the resources at its Caspiche
project to 450 Mt grading 0.65% g/t Au
in the inferred category, and also contains
376 Mt at 0.25% Cu sulfide and
2.4 Mt grading 1.3% Cu oxide. Barrick
Gold agreed to transfer exploration
rights in the Maricunga belt to Andina
Minerals in exchange for 2.5% of
Andina’s common shares and US$1.5M
in additional shares in a year. Barrick
also will be entitled to a 1.5% net
smelter return royalty on any metal
produced at the concessions granted to
Andina. The properties in question surround
Andina’s Volcán gold project
and increase the company’s concessions
from 9,800 ha to 24,840 ha. The estimated
resources of t Volcán project are
242 Mt grading 0.85 g/t gold in inferred
category, using a 0.5 g/t cutoff.
Chile’s state copper producer,
Codelco, is planning to carry out two
drilling programs for a total of 16,000
m in its Inca de Oro project, located in
Region III, northern Chile. Inca de Oro
is considered by some locals as the natural
replacement for the nearby
Salvador mine, which is scheduled for
closure once sulfides are mined out by
the end of 2011. The state miner had
aimed to auction off Inca del Oro but
postponed the plan due to poor market
conditions caused by the global financial
slowdown. Codelco also announced
the discovery of a new Cu deposit, El
Americano, near its Andina mine,
located in Region V, central Chile. The
world’s largest copper producer, Codelco
produced 390,000 t in the first quarter.
Freeport-McMoRan Exploration
Corporation completed a 7-hole, 1,300m
reverse circulation drill program at
Coro Mining Corp‘s Llancahue
prospect, located 38 km southwest of
Talca in central Chile. Llancahue is part
of their Talca belt exploration agreement.
One of the holes was designed to
test exposed copper mineralization at
the edge of a cover area, and intersected
100 m at 1.375% Cu, 0.015% Mo, and
3.8 g/t Ag from 10 to 110 m. The other
holes were drilled over outcrop alteration
with associated geochemistry
anomalies, and intersected propylitic al -
teration without copper mineralization.
MEXICO
Esperanza Silver Corp has begun a
preliminary economic assessment study
of its wholly owned Cerro Jumil gold
project located in the Morelos state.
Measured and indicated resources are of
the order of 22.227 million tonnes (Mt)
@ 0.85 g/t Au and 0.6 g/t Ag or 642,000
oz of gold equivalent. The project will
be an open pit, heap-leach operation
for recovery of gold and silver. Good
luck to Esperanza Silver on this new
phase of this property! Farallon
Resources Ltd. announced that it has
reached commercial production, starting
on the first day of April, at its G-9
mine located within the Campo
Morado mining district in the Guerrero
state. The mine is now operating at full
design capacity of 1,500 TPD. G-9 mine
measured and indicated resources at a
cutoff of 5% Zn are of the order of 2.180
Mt @ 3.00 g/t Au, 209.1 g/t Ag, 1.48%
Cu, 1.32% Pb and 11.0% Zn. The focus
going forward is on improving operational
efficiencies in both the mine and
mill, with particular emphasis on
improving mill recoveries.
Goldcorp Inc. has announced that
the Peñasquito property construction of
mine and mill remain on schedule. The
first phase of the sulfide process plant
remains on track for commencement of
construction in mid-2009, with production
of first metals concentrates anticipated
in late 2009. Mining activity at
the site has been very successful, with
mining rates now averaging over
500,000 TPD and over 3 Mt of sulfide
ore added to stockpiles. Exploration
activity at Peñasquito is focused on a
number of compelling regional targets,
including delineation drilling at Noche
Buena and initial drill tests at El
Quemado and Gallos Blancos.
MAG Silver Corp. announced the
Resource Estimate for the Valdecañas
vein, located in the Zacatecas state. The
Indicated Resources are on the order of
2.95 Mt @ 879 g/t Ag, 2.22 g/t Au,
2.39% Pb and 4.15% Zn. The inferred
resource for Valdecañas FW and HW
veins and the stockwork zone has been
estimated to 7.21 Mt @ 458 g/t Ag, 1.54
g/t Au, 1.89% Pb and 3.14% Zn. The
total contained metals in the indicated
resource are 83 Moz of silver, 210,000
oz of gold, 155 million pounds of lead,
and 269 million pounds of zinc. The
inferred resources contain an additional
106 Moz of silver, 356,000 ounces of
gold, 301 million pounds of lead and
498 million pounds of zinc. Minera
Juanicipio S.A. de C.V., a 56/44 joint
venture between Fresnillo plc and
MAG, reported excellent preliminary
metallurgical results of combined recoveries
in the lead and zinc concentrates
of 96% silver, 88% gold, 90% lead and
82% zinc from selective flotation tests.
Minefinders Corporation Ltd.
announced that it has
to page
officially inaugurated 48 ...
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