Panamanian government studies Tiomin’s Cerro Colorado contract

The Panamanian cabinet is expected to ratify the contract under which Tiomin Resources (TSE) will acquire development rights to the Cerro Colorado copper deposit in western Panama.

Tiomin is considering using a solvent extraction-electrowinning (SX-EW) process for the supergene-enriched and oxidized copper mineralization at Cerro Colorado. The deposit has a supergene and oxide mineral reserve of 127.8 million tonnes grading 0.54% copper.

Once production gets under way, the company will study the feasibility of mining the primary sulphide mineralization, reserves of which are estimated at 1.4 billion tonnes grading 0.78% copper, with silver and gold byproducts.

Previous studies concluded that production was not feasible, owing to the high capital cost of constructing an open-pit mine and conventional mill. However, the advent of SX-EW may have paved the way for initial development of the supergene mineralization, which in turn would provide cash flow for development of the primary mineralization.

Tiomin has raised $23.4 million by selling special warrants, and the funds are being held in escrow until the contract is ratified by the Panamanian cabinet.