Based on results from exploration drilling,
The deposit is 400 km northwest of the company’s producing Cuajone and Toquepala copper mines, where a major expansion and modernization program is under way.
About 5,000 metres have been drilled to test the porphyry copper system, which is reported to have “geological potential” of up to 200 million tonnes at an average grade above 1% copper, plus molybdenum and gold values. The deposit is still open and its ultimate dimensions are unknown.
The mineralized zones are underlain by low-grade primary copper and molybdenum mineral occurrences. SPC describes the mineralogy as “complex” in that it includes both oxidized and secondary enriched zones. Mineralization is dominated by chalcocite in the higher-grade zones.
While initial results are viewed as encouraging, SPC says reserve definition and metallurgical tests are necessary to evaluate the economic feasibility of the Los Chancas exploration project. Ongoing work will include mine planning to test the project’s viability.
SPC, which is the largest mining company in Peru and one of the world’s 10 largest copper producrs, holds rights to a 100% interest in the project. The company in turn is 54.3%-owned by
Asarco and Phelps Dodge recently announced plans to merge. However, Asarco rebuffed the merger proposal in favour of Grupo Mexico’s cash offer of US$29.75 per share. The Mexican copper company’s sweetened bid is valued at $2.25 billion, including the assumption of debt. As a bonus, Groupo Mexico will gain an interest in SPC and its new copper discovery.
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