Joint venture partners International Mahogany (TSE) and North Lily Mining (NASDAQ) recently placed the Tuina copper project in northern Chile back into production.
The companies spent a total of US$3 million to upgrade the heap-leach mine, including the installation of new crushing and handling equipment to bring capacity up to 1,500 tonnes per day. The Tuina had been in production for over 10 years with the previous owners operating at about 180 tonnes per day. Scott Emerson, a spokesman for International Mahogany, said proven minable oxide reserves at the project are estimated at 4.9 million tonnes grading 1.5% copper with a strip ratio of about 1.5-to-1.
The mine is currently operating at about 1,500 tonnes per day with an increase to 2,500 tonnes per day planned for June. Tuina produces a leach precipitate which is sent off site for refining.
Emerson said copper production for the year should reach 13.8 million lb. based on a 75% recovery rate. Operating costs are estimated at US57 cents per lb.
The planned production increase to 2,500 tonnes per day should boost copper output to 24 million lb. in 1993.
The company plans to build a solvent-extraction electrowinning plant capable of handling 2,500 tonnes per day by June, 1993, at a capital cost of about US$4 million.
Emerson said the company expects operating costs to drop to the US45 cents-per-lb. level as a result of the move to solvent extraction. Emerson noted that the company is conducting further exploration drilling on the property in an effort to expand reserves. He added that prospects are “excellent,” with current reserves open to expansion both along strike as well as to depth.
International Mahogany is in excellent financial shape with about $9.6 million in working capital and only $2.5 million in long-term debt which is owed to the company’s parent, North Lily.
North Lily owns about 60% of International Mahogany’s 16.6 million outstanding shares.
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