The Executive Board of the Congress of Peru has approved a motion that recommends the transfer of the federal government’s 25% ownership of the Tambo Grande open-pit mine in Peru, to the regional government and that a third party review of the environmental impact study.
Manhattan (MAN-T) can earn a 75% stake in the project, which consists of 10 concessions measuring 100 sq. km. The company has until May 2003 to complete the feasibility study and secure development financing.
Manhattan hopes the transfer of the stake to the regional government will improve the local resident’s opinion of the project as it, “increases local participation and benefits resulting from development.”
Earlier this summer, residents of Tambogrande overwhelming voted against the project’s development in a local, non-binding referendum. Because some of the deposit underlies part of the town, about half its population (16,000) must be resettled if mining is to proceed — a contingency the company has accounted for in its capital projections.
Some call into question the validity of the vote claiming that up to ten thousand people didn’t turn up to the vote. According to wire reports, nearly 98.7% of the valid ballots were opposed to Manhattan’s plans, but 27% of the 36,000 eligible voters failed to turn out.
Probable reserves in the oxide portion of Tambo Grande’s TG-1 deposit total 8.2 million tonnes grading 3.34 grams gold and 58.7 grams silver per tonne. The sulphide portion has probable reserves of 57.8 million tonnes running 1.5% copper and 0.9% zinc, plus 0.5 gram gold and 25 grams silver per tonne.
Work continues on final drafts of the project’s feasibility and environmental impact studies.
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