VANCOUVER (miningweekly.com) – Under a favourable investment and legal framework in Argentina, primary silver producer Pan American Silver (PAS) remains committed to the safe and environmentally responsible development of the world class Navidad silver deposit, located in Argentina’s Chubut province, the company affirmed on Wednesday.
Current laws in Chubut, however, prohibit openpit mine development.
PAS confirmed that its chairperson Ross Beaty had met with Argentina President Mauricio Macri during the Argentina Business and Investment Forum, in Buenos Aires.
The company reported that, during their meeting, Macri and Beaty discussed the prospects of the mining industry in Argentina, including the company's Navidad project, which is one of the largest undeveloped silver deposits in the world.
PAS stated that it was “very encouraged” by the policies that had been introduced by Macri's administration since taking power in 2015, to make Argentina an attractive place for local and foreign investments.
PAS acquired the project in 2010 through the acquisition of Aquiline Resources. A 2011 preliminary economic assessment considered a production rate of 15 000 t/d from openpit mines at Navidad’s eight known deposits using shovels and trucks. The mine schedule, based on the mineral resources, is expected to last nearly 15 years after a preproduction and construction period, with a further 18 months of rehandling ore from a low-grade stockpile for plant feed after mining is completed.
The predicted processing plant design includes a 15 000 t/d capacity mill with flotation and concentrate filtration, producing a copper/silver concentrate and a lead/silver concentrate.
However, the Navidad project has been on care and maintenance since the fourth quarter of 2013. In 2015, PAS spent a total of $6.8-million at Navidad on holding and maintenance costs.
Chubut passed a law in 2003 (Law 5001) that prohibits openpit mining and the use of cyanide in mineral processing in the entire province, effectively preventing the development of Navidad. To date, this law remains in place.
Compliant mineral resources at Navidad comprise 15.4-million tonnes grading 137 g/t silver for 67.8-million ounces in the measured category, and 139.8-million tonnes grading 126 g/t silver for 564.5-million ounces in the indicated category.