Ariana

Overview

Summary

Location

Junin, Perú

Key commodities

Cu (Zn/ Au/Ag)

Land package

960 ha

Development stage

Feasibility Study

Deposit Type

Hydrothermal skarn

Ownership

70%

Type of mine

Underground

 

 

Ariana is an underground hydrothermal skarn (Cu with Zn/Au/Ag credits) located in the Yauli Province, Junin Region, Peru. Ariana is located in the rich Central Peruvian polymetalic belt and is 45 km away from the Central Highway. Ariana is approximately 165km from the port of Callao, at a height of 4,500-5,000 meters above sea level. The total land package for Ariana covers almost one thousand hectares.

SPM’s initial works have been concentrated in implementing a staged diamond drilling program to complement the previous studies. To date SPM has completed c. 43,000 meters of drilling and has finalized a Bankable Feasibility Study in September 2014, and a resource update in March 2015. Furthermore, SPM has received government approval for the Environmental Impact Assessment for the project and has a full social licence from the local community. SPM is currently in the final stages of approval for the project’s construction permit.

Ariana has been previously drilled by Teck and Pan American Silver Peru (PAS), whom identified two ore bodies through 13,000+ meters diamond drilling. SPM entered into a Joint Venture with PAS in 2011 to continue development of the site.

Geology

The mining zone in Ariana is a replacement deposit of Jumasha limestones on the fracture zones and core faults of the Ariana or Puca Rumi Anticline by subvertical irregular bodies of garnet—pyroxene skarn, along 1 km approximately with Northwest/South-east alignment, their thickness are between 3 and 10 m.

Due to the garnet-pyroxene relationships, the disposition in areas of metamorfic-metasonic products and Copper-Zinc concentrations, it is considered that Ariana corresponds to a structurally controlled mineral deposit of intermediate to distal skarn of low sulphidation. Predominant metals are copper and zinc, with gold values and local values of silver. A first mineralization event with pyrite, chalcopyrite, pyrrhotite and arsenopyrite deposition can been seen; cut by a second event with pyrite, sphalerite, chalcopyrite, as well as galena, bournonite and gray coppers. The first stage is formed basically by Zn and the second one by Cu-Zn-Ag. The presence of Au is linked to the Cu mineralization (native gold filled with fine porosity of chalcopyrite) in narrow veinlets as well as some replacement areas indistinctly.

Operating Data & Reserves

Reserves  & Resources mt Cu % Zn % Au g/t Ag g/t

M&I Resources

mt

10,450,498

1.08

1.63

0.70

17.5

Inferred Resources

mt

7,200,266

0.92

1.18

0.76

16.1

Resources are NI 43-101 compliant, based on the BFS.

Future potential

SPM completed a BFS in September 2014 with resource estimations from the BFS indicating an initial plant capacity of 2,000 tpd. SPM got approval for the EIA and the social licence for the project during 2015-2016. Construction is expected to take 2 years and commercial production could start in mid-2018. By improving the geological interpretation and modelling SPM has been able to increase M&I resources at Ariana by over 20% as of March 2015. There remains significant potential to further expand resources through infill and step-out drill campaigns as resource definition has so far focused on a small area of the deposit, with substantial geological potential remaining. Ariana is planning to begin a resource expansion campaign in 2Q2017, through the end of 2017. An increased resource base can allow for a ramp up in plant capacity to 3,000 tpd soon after commencing operations.

Gallery