Canadian-based Cerro de Pasco Resources is adding to its polymetallic interests with the acquisition of the Santander operation in Peru from Trevali Mining.
While no financial details were released, the assets the company will be gaining include an underground mine, a 2,000-tonne-per-day mill, a conventional sulphide flotation mill and other infrastructure.
The new buyer pointed to several benefits as an impetus for its purchase, including owning a profitable mine with potential and significant exploration upside; having a steady-state and fully permitted operation with stable workforce and good community relations; a modern concentrator that could also be used to treat material from its nearby El Metalurgista concession; and a significant tailings resource which can be retreated at the end of the life of mine.
CDPR said it plans to develop the Santander Pipe orebody by linking the existing underground mine, increasing payable zinc equivalent metal and reducing AISC after two years.
Santander, located 215 kilometers northeast of Lima, is currently operational and fully permitted. Trevali’s guidance for 2021 Santander operations indicates the mine will produce approximately 50 to 55 Mlb of payable zinc, 4 Mlb of payable lead and 282 to 297 koz of payable silver per year.
“The acquisition of this profitable mine will be transformational for CDPR with material potential to grow operating cashflow and significant exploration upside,” CEO Guy Goulet said.
“Furthermore, the proximity to CDPR’s El Metalurgista concession provides the Company potential to utilize Santander infrastructure for future development.”
The new producing miner, looking ahead, plans to extend the operating life of the Magistral orebody and develop access into the higher-grade Santander Pipe orebody over the next 24 to 36 months. Doing so would extend the mine life by a half decade, it said.
Source: Cerro de Pasco Resources