Border-crossing pact augurs well for Pachon

The Pachon project in Argentina has received both a statistical and logistical boost.

A new calculation by Cambior (CBJ-T) has augmented the proven and probable reserve total by 28%, to 882 million tonnes grading 0.62% copper (or roughly 12 billion lb. in situ) and 0.015% molybdenum. Accordingly, the estimated stripping ratio has been changed to 0.9-to-1 from 0.8-to-1.

Pachon is a typical porphyry-copper deposit, with chalcopyrite and molybdenum mineralization associated primarily with small veins of quartz within diorite, andesite, tuff and a siliceous breccia.

Cambior, as operator, has earned a 50% interest from its joint-venture partner, Minera San Jose.

The governments of Argentina and Chile have signed a protocol agreement that will facilitate the efficient operation of the project, which lies in San Juan state, near the border with Chile. The agreement commits both governments to offer full border co-operation during the construction and operational phases of the mine. Employees, goods, machinery and vehicles will be free to cross the common frontier as many times as necessary.

Cambior’s feasibility study for Pachon, which will assume a throughput of 100,000 tonnes per day, is scheduled for completion by the end of March.

Metallurgical tests have confirmed that flotation recoveries for copper vary between 85% and 92%, depending on rock types, with the diorite exhibiting the highest values. The flotation recovery for the molybdenum is in the order of 60% for all rock types.

The copper concentrate also includes some gold and silver credits.

Capital cost and operating cost estimates will be updated following completion of the feasibility study.

In a release, Cambior President Louis Gignac said, “Work on the Pachon feasibility study is progressing as anticipated and we have begun the process to solicit interests in equity participation and the marketing of copper concentrate. Preliminary indications are encouraging and we plan to firm up our development schedule with the benefit of the completed feasibility study and the results of the solicitation process.”

Cambior is currently in discussions with the owners of the Los Pelambres copper mine to explore the possibility of sharing some infrastructure. The mine is situated just beyond the border in Chile.

Rothschild Natural Resources has been hired to support efforts in the search for equity funding, the marketing of the copper concentrate and the organization of project financing.