Gold-Silver Project, Peru (100% Laconia)
Rasuhuilca is one of Laconia’s lead projects. It is a significant advanced gold-silver development project in Peru. Laconia completed a head of agreement to acquire 100% of the project in December 2011 from Gold Mines of Peru Ltd. The acquisition was finalised in May 2012 and Laconia is planning upcoming activities on the project.
Laconia is currently engaging with stakeholders and host communities to build working relations. Laconia is communicating and educating about the sustainable development plans for the area, and the benefits that will be provided back to the Communities and nationally.
Rasuhuilca is an outstanding near-term development project with significant exploration upside. A Feasibility Study was conducted at the project in 2008 and this is currently under review by Laconia for further reporting in 2013.
Rasuhuilca has a current JORC Inferred Resource of;
360,000 tonnes @ 1.97 Gold g/t and 179 Silver g/t.
The Resource was confirmed in the Inferred category however, once independent sampling has been completed to confirm the tenor of the historic data, it is envisaged that the Resource will be upgraded so that it can be used as the basis for mine planning activities.
Rasuhuilca Inferred Resource, at a 2.5 g/t Au EQ cut-off, as at January 2011:
All cut offs based on X g/t Au Eq are conceptual in nature only. There has been insufficient metallurgical test work to date to determine eventual metallurgical recoveries and it is uncertain that the conceptual cut offs used below wilL be appropriate following further metallurgical test work.
The Rasuhuilca project is located approximately 500km south east of Peru’s capital, Lima, in the southern part of the country. Access to the project is via sealed highways through Nasca and Puquio, then minor roads. The final stage of approach to the project is via tracks from the nearby village of Chipao. Laconia plans to improve project access, and a short runway airstrip may also be constructed on the project area. There is a ready workforce, with prior experience in exploration and mining operations, in the villages of Chipao and Andamarca.
Laconia will also contribute to improving current infrastructure and further investment into the local communities and neighboring regions too will benefit.
Local communities and sustainability
Laconia Resources is committed to engaging local Peruvian communities and stakeholders to ensure equitable negotiations are developed in preparation for future sustainable operations. Laconia is currently communicating with local communities to further educate them on the Company’s operations in order to build strong working relationships for the future.
The acquisition of the Rasuhuilca Gold-Silver Project in May 2012 signified a change of ownership from previous Companies operating at the site and in the area. With this, Laconia acknowledges its responsibilities and is committed to ensure sustainable development processes are implemented, considering social and environmental impacts on the region. Laconia is committed to improving the economic conditions of not only the host communities and surrounding regional areas, but of Peru as a nation.
Looking ahead, the Laconia plans to contribute to environmental and social programs to benefit the region, in conjunction with providing employment opportunities for the local workforce and investment back to the local communities.
The Rasuhuilca project is located in the Andean volcanic arc of southern Peru, and comprises four concessions (Patacancha No. 1 to 4) over a total area of 2,765 hectares. These concessions cover a large part of an extensive high-sulphidation alteration system. The alteration system contains numerous zones of gold-silver mineralisation, as veins and more irregular bodies of veining, brecciation, and silicification.
Gold-silver mineralisation at the project area is typical of high-sulphidation epithermal style mineralisation. The best developed mineralised body in the project is the Rasuhuilca zone (which hosts the existing Resource estimate), which has been explored by underground development, intensively over its central 250 metre long portion. Here it has a vertical extent of at least 180 metres and reaches a thickness from 17-40 metres in a steeply south-plunging shoot. Average grades from underground channel sampling are about 2 g/t Au and 185 g/t Ag.
There is significant potential to increase the current resource base at Rasuhuilca and on other targets along strike. There is also significant potential for gold-dominant epithermal and copper/gold porphyry mineralisation within the project area. The project is located in the same region as Hochschild Mining Plc’s (Hochschild) major silver and gold operations. Hochschild has reserves and resources exceeding 186Moz Ag and 1.1 Moz Au.
At the Rasuhuilca mine the breccia complex comprising the ore body is readily identifiable in underground faces and is bound by sharp contacts with the host andesite. The development drives on the 4,826 metre level have been installed on one or both margins of the brecciated ore body, leaving the majority of the ore in place except for a number of cross cuts. The cross cuts were used to conduct channel sampling that was employed to estimate the mineral resource.
The lowest development level has only minor amounts of water and the drives are in reasonable condition. Ventilation rises are installed between the levels, which should allow mining to commence in a short timeframe.
Feasibility Study Review
The project had a Feasibility Study completed in 2008, by Geomin Consultants Limited. The study included estimates of Capital and Operating costs, Mine Planning, Metallurgy and Milling, plus Financial aspects and other core study components. Laconia will undertake a full review of the Feasibility Study to update and validate its findings.
ASX Code LCR
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