Vancouver — The long road to developing the Tambo Grande massive sulphide property may have been dealt a final blow now that government-run
The move came after the junior presented documentation aimed at demonstrating that the requirements of the option to earn a 75% interest in the ground had been met. Manhattan also delivered to Centromin the final feasibility study and finance plan for potential development of the project.
After reviewing the documentation, Centromin Peru concluded Manhattan had failed to meet the requirements of the option agreement and that the option agreement was terminated.
“We are very surprised by this decision,” says company president Lawrence Glaser. “Manhattan presented a carefully prepared and thorough submission that would ensure, subject to community approval, the responsible development of the Tambo Grande project.”
The feasibility study envisions yearly production of 190 million lbs. copper and 90 million lbs. zinc. Mining would begin with the TG-1 oxide gold-silver deposit and end with the underlying sulphide reserve. The first phase is now expected to cost US$180 million to complete, and the second, US$145 million. Stripping ratios are pegged at 2.6-to-1 for the first phase and 1.1-to-1 for the second. On average, 7,500 tonnes of material would be sent to the mill daily in the first two years, followed by 10,000 tonnes in the third year and 20,000 tonnes in the fourth, when the grinding line from the gold-silver circuit is converted.
Annual production from the oxide deposit, which would be depleted in 3.5 years, is forecast at 260,000 oz. gold and 3.2 million oz. silver. The base metal operation would have a life of nine years.
Probable reserves in the oxide portion of the TG-1 deposit total 8.2 million tonnes grading 3.34 grams gold and 58.7 grams silver per tonne. The sulphide portion has probable reserves of 57.8 million tonnes running 1.5% copper and 0.9% zinc, plus 0.5 gram gold and 25 grams silver per tonne.
The option agreement with Centromin Peru comprises 10 mineral concessions covering 100 sq. km.
The project has been plagued, in recent years, by local opposition to development, and Manhattan is now turning to its Peruvian legal counsel to find a solution to the matter.
While awaiting legal recourse, Manhattan intends to explore its land south of the town of Tambo Grande, in particular the B-5 prospect.
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