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Mining Group eyes copper production in Chile

Mining Group eyes copper production in Chile

Photo by Bloomberg

4th December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior explorer Mining Group has signed a production agreement over the El Roble copper project, in Chile, allowing the company access to the Panga copper mine.

The production agreement allowed Mining Group to extract 5 000 t/m of ore from the historic Panga mine, subject to a number of conditions, including a monthly payment of $2 000.

The first $200 000 of revenue generated from the operation would also be subject to a 10% royalty, and every subsequent dollar of revenue over the $200 000/m limit would be subject to a 5% royalty.

Royalty payments would be made in lieu of the minimum monthly payment when royalty payments exceed $2 000/m, with Mining Group being held liable for the minimum monthly payments from January next year.

Mining Group MD Zeffron Reeves said that the production agreement marked a significant milestone for the company in moving forward to achieve its short-term goal of starting small-scale production at El Roble.

“The Panga mine has been historically mined with a number of small stopes mapped from underground and numerous workings mapped at surface along its 3 km strike extent.

“This agreement gives us access to 1 100 m of strike, where there is around 220 m of adit development and open ore faces exposed at the bottom of the mine.”

Reeves said that the immediate mine area had the potential to host numerous high-grade copper- and gold-bearing ore shoots.

“Now we have exclusive access to Panga, we will commit resources to fully assessing the area. This will include a small drill programme targeting below the mined-out historic stopes, which will assist the company in delineating economic widths of high-grade copper mineralisation and making a decision on whether the start of small-scale mining at Panga is a feasible option.”

Edited by Creamer Media Reporter

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