Peru's Compañía de Minas Buenaventura Purchases Chucapaca Mining Project

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--Compañía de Minas Buenaventura SAA (NYSE:BVN) (Lima, Peru) announced it acquired 51% of the remaining shares of the Chucapaca Project from its former partner, Gold Fields Limited (NYSE:GFI) (Johannesburg, South Africa), for a total of $81 million. Compañía de Minas is now the sole owner of the project.

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The Chucapaca project is located in the city of Ichuña in the department of Moquegua, 100 kilometers southwest of the city of Puno, Peru.

According to feasibility studies performed by Gold Fields, the project requires an investment of US$2 billion and can produce 500,000 ounces of gold per year. Compañía de Minas Buenaventura SAA decided to invest $700 million, which includes the mine and a 30,000-ton-per-day processing plant to produce an average of 300,000 ounces of gold per year.

The company also decided to change the original mine design from an open pit mine to an underground mine. This strategy will allow access to areas of high-grade gold found at greater depths.

Compañia de Minas is planning another internal feasibility study to develop new engineering details and, at the same time, begin with the environmental permits. According to the schedule, the company expects to begin the bidding process during the second semester of 2016, after necessary permits and funding are obtained.

Chucapaca is Peru's largest gold discovery in 10 years. With the development of this project, Compania de Minas will become one of Peru's leading mining companies.

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