Salta: Canadian mining company seeking US$ 110 million to restart project

The Canadian mining company wants to determine the feasibility of the project in the first quarter. It is working to get financing. The plant will process 10,000 t/d of ore.

Shareholders of Mansfield Minerals, a Canadian mining company based in Vancouver, formed a new company to definitely restructure the Lindero project, with the aim of operating a gold mine in the Puna in Salta. The name chosen was that of Goldrock Mines, which since January is listed on the Toronto Stock Exchange. The new name was part of a comprehensive strategy that also included the appointment of an overall management led by a new CEO, Paul Matysek, and another COO, David Keough.

Goldrock Mines plans to complete a redesign of the technical and economic feasibility of Lindero during the first quarters of the year, and therefore presented an addendum to update the Environmental Impact Statement (EIS), which has been passed by the administration of Juan Manuel Urtubey late last year. This information was held by Facundo Huidobro, head of Goldrock in Salta. The above mentioned are the preliminary steps before launching the metalliferous mine construction scheduled for the later months of 2013 or early 2014.

The Canadian mining company considered the installation of an industrial plant to process 30,000 tonnes per day (t/d) of mineral resources. But in June last year, it decided to reduce the installed capacity to 15,000 tons/day. “The idea is to optimize the operation cost and reduce the initial investment. Therefore, now we consider the installation of a plant to process 15,000 t/d
after the third year, and gradually increase its capacity,” said Huidobro to El Inversor Energético & Minero.

The redesign involves a significant reduction in capital disbursement, a necessity in times when private financing for mining has become considerably more expensive at an international level. Thus, out of the US$ 250 million initially planned, the investment is now expected to be located around
US$ 110 million.

Scale

The launch of Lindero will encourage the creation of more than 400 direct jobs and not only the installation of the deposit exploitation facility (processing plant, crushing, and leaching basin), but also the energetic and civil infrastructure needed by the project.

The company claims that Lindero is a model, “almost exemplary” project, which operation includes no oddity. “It is a great venture for a small or medium size exploration company that wants to give its first steps in the exploitation of metals, since it does not require any complexity,” said Goldrock manager, who has been exploring in Salta for more than 10 years through Mansfield.

The location of the reservoir, a few miles from Salar de Arizaro, is strategic because it is located on an endorheic basin that discards any contamination, according to most biologists and archaeologists.

Lindero proven and probable reserves reach 1.92 million ounces of gold, with a cutoff grade of 0.19 grams per tonne (g/t). The average grade of the project is 0.59 g/t, while the inferred resources already amount to 2.3 million ounces.