Speaking at the ITRI International Tin Conference in Lima, Minsur CEO Juan Luis Kruger presented a positive outlook for tin production by the company and in South America in general. The group’s tin production in Peru and Brazil is expected to rise from 25,750 tonnes in 2015 to over 30,000 tpy in the next three years, boosted by a planned start-up of the B2 tailings treatment project at the San Rafael mine in Peru from late 2018 and an expansion of the Pitinga mine in Brazil. These two main projects will add 8,000 – 10,000 tpy to production capacity. Meanwhile a major increase in exploration drilling activity in recent years has extended the life of the San Rafael mine and firmed up planning of two potential brownfield projects nearby.
Minsur has completed over 150,000 metres of drilling within San Rafael in the last three years, boosting the estimated mineral resource to over 10 million tonnes at an average grade of 2.05% and extending expected mine life to over 8 years. In the short-term a new technology ore sorting project to be commissioned this month should provide extra feed to the concentrator. Meanwhile a preliminary feasibility study on the B2 project is due to be completed in two months, paving the way for a construction start in late 2017 and initial production at the end of 2018 or early 2019, depending mainly on the length of time required for permitting.
The Quenamari (also known as Nazareth) and Santo Domingo advanced exploration projects also offer the potential to add to future production in Peru. Nazareth is only 5 kilometres from San Rafael and could offer a quick extension of its mine life. Initial drilling has identified a resource of 3 million tonnes of ore grading 1.53% tin (46,000 tonnes contained tin), with significant upside potential. While metallurgical testing and scoping studies are carried out here, a 16,000 metre drilling programme is planned for 2016 at Santo Domingo, 30 km west of San Rafael.
