A unit of Placer Dome (TSE) recently concluded an agreement with a Chilean government mining corporation for evaluation and possible development of the Andacollo copper deposit in northern Chile.
The project is reported to contain an estimated preliminary reserve of 274 million tons grading 0.62% copper, plus “potentially significant gold content.”
A new mining company was formed to hold and operate the project. It is owned 80% by a unit of Placer, and 20% by the government mining corporation. Placer Dome Chile paid US$1.2 million for the right to evaluate the deposit, and with other subsidiaries, will contribute to staged payments totalling US$4.8 million to the capital of the new company.
A feasibility study is due to be completed by mid-1992, but Placer has the right to extend the study for a further year on payment of an additional US$5 million to the Chilean government mining company.
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