Marimaca oxide project gets Chile environmental nod

Marimaca Copper (TSX: MARI, ASX: MC2) says it has received formal environmental approval to develop its flagship oxide project in northern Chile, placing it closer to construction-ready status.

The Marimaca oxide deposit — also referred to as MOD — is an open-pit, heap-leach operation that aims to produce about 50,000 tonnes of copper cathodes annually over 13 years, according to a statement Tuesday. The mine’s environmental footprint will be minimized through the use of recycled seawater from the Bay of Mejillones, the company says.

After filing its environmental impact statement with Chilean authorities in December, Marimaca says it has addressed questions about the project’s potential effects on local communities.

The environmental approval was issued “following a rigorous preparation and engagement process, including multiple years of baseline environmental studies, social and archaeological information collection, multiple voluntary stakeholder engagement programs, and various technical and project engineering studies,” Marimaca says.

Closer to construction

The milestone brings Marimaca another step closer to the start of construction at MOD, which is targeted for the second half of 2026. The company is now moving ahead with acquiring the auxiliary permits for the project, after which it will make a final investment decision.

“Developing our assets in Chile to the highest possible environmental and social standards is a core objective of Marimaca,” said Jose Antonio Merino, the company’s chief financial officer and managing director for Chile.

The environmental nod represents another “derisking event” for the project, BMO Capital Markets mining analyt Rene Cartier said Tuesday in a note. He underlined the project’s “impressive timeline” of less than 12 months for securing approval.

Marimaca rose 3.5% to $12.06 apiece Wednesday afternoon in Toronto, putting the stock on course for a fifth straight daily gain. That gave the company a market capitalization of about $1.4 billion (US$1 billion).

Pampa Medina drilling

Separately, Marimaca also provided the final batch of drill results from the Pampa Medina satellite deposit.  Located about 28 km to the east of MOD, Pampa Medina is expected to form part of the company’s hub-and-spoke strategy in the Antofagasta region.

The new set of intersections — which includes 16 metres of 2.29% copper from 464 metres depth and 6 metres of 3.17% copper from 334 metres downhole — demonstrates the continuity of high-grade sedimentary horizon in the south, about 900 metres from previously announced drilling, the company says.

“Exploration efforts at Pampa Medina continue, and we are increasingly confident in our long-term growth strategy beyond the 50,000-tonne-per-annum of copper production contemplated in our definitive feasibility study,” CEO Hayden Locke said in Wednesday’s statement.

Pampa Medina represents a “core component of growth” that can offer a material uplift to Marimaca’s future production profile, BMO’s Cartier said Wednesday in a separate note.