South Africa’s Gold Fields (GFI-N) has inked a deal to pick up 92% of Peru-based Sociedad Minera La Cima. No price was provided as financial details are still being finalized.
Sociedad Minera owns the Cerro Corona copper-gold project and other mineral properties in Cajamarca, Peru. The operation, which is slated to begin producing in about 2.5 years, represents the company’s first foray into operating in South America. Gold Fields already has some early-stage exploration properties in Brazil and Ecuador.
An updated feasibility study at Cerro Corona indicates that the project is capable of producing 147,000 oz. of gold and 65 million lbs. of copper annually at total operating costs of US$212 per oz. of gold equivalent or US48 per lb. of copper equivalent. The estimates are based on a gold price of US$360 per oz. and a copper price of US80 per lb.
Proven and probable reserves at Cerro Corona, a gold-copper porphyry, are pegged at 65.2 million tonnes grading 0.61% copper and 1.14 grams gold per tonne, for 397,000 tonnes of contained copper and about 2.4 million oz. of contained gold.
The acquisition is subject to the acquisition of some required surface rights, approval of the environmental impact study, and the granting of construction permits.
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