Chutine needs US$22m to build copper mine at San Antonio

Following the recent completion of a feasibility study, Chutine Resources (VSE) says it will need about US$22 million to build a new open pit copper mine at its San Antonio property in the Sonora state of northern Mexico.

.TThe cost figure represents the total investment required for plant and support facilities, and assumes new equipment is used for the mine which will have a 10-year lifespan.

The study was completed by consultants E & C International of Tucson, Ariz., and includes several aspects such as reserve calculations and development of a mine plan. The company proposes to treat its ore by low-cost leaching and extract the copper from solution by solvent extraction with final production of cathode copper by electrowinning (SX-EW).

At a 0.22% cutoff grade, minable reserves for the San Antonio mine are estimated at 10.2 million tons grading 0.91% copper with a stripping ratio of 0.98 waste to 1.0 ore for the open pit.

Total reserves in all categories are estimated at 20.6 million tons grading 0.64% copper. Chutine said the reserves are still open in all directions and at depth. The company is also exploring wide spread low-grade gold mineralization which surrounds the copper deposit.

The open pit, SX-EW operation would produce about 16.8 million lb. of copper per year at a total operating cost of around US$0.37 per lb. Copper prices are currently in the US$1.10-1.12 range. Chutine said it has already begun seeking financing to put the operation into production.