MINERA TRES VALLES ANNOUNCES PAPOMONO MASIVO DEVELOPMENT SCHEDULE

Ph: Rayén Luna

MINERA TRES VALLES ANNOUNCES PAPOMONO MASIVO DEVELOPMENT SCHEDULE

 

The start of developments at Papomono Masivo will give rise to one of the most significant structural optimization projects for the Company; whose Mining Manager, Jorge Baraqui, provides details on the scope of this operation.

The Papomono Masivo sector of the underground mine is an operational consolidation project that will be developed by Minera Tres Valles. It will use the Inclined Block Caving mining method, which is an innovative procedure for a medium-sized project. Aiming to optimize underground mining operations, this method allows to prioritize high-grade areas and extract ore with a low unit cost of production.

Several mineralized structures converge inside the Papomono underground mine, some are vertically oriented and others sub-horizontal layers, which form an attractive exploitation sector for the chosen mining method, leading to an increase in productivity at this deposit.

Block Caving is a very attractive method due to its low cost of operation and high productivity, and it is more often developed in large-scale deposits.

“The variant to be used by Minera Tres Valles, Inclined Block Caving, is an innovation in regard to the design and layout of the extraction points. The conventional design places all extraction points at a single production level; meanwhile in our variant, the extraction points are placed at different levels which together reach the desired production level. This arrangement allows us to limit the height of columns according to their higher degree of mineralization, thus avoiding excessive waste extraction”, as stated by Jorge Baraqui, Tres Valles’ Mining Manager who has vast experience with developing this kind of system.

Currently, the underground mine uses an exploitation method focused on selectivity, which entails low productivity and a high production cost. The start of the Papomono Masivo program will produce a great change in terms of efficiency, which will allow the company to reduce operational expenses and feed its processing plant with its own ore constantly.

The mineral reserves of this deposit total to 2.9 million tonnes, which will provide 2,000 tonnes per day of production over a 5-year life of mine.

Jorge Baraqui highlights that the team in charge of the project is “currently studying alternatives to increase the production rate to 3,000 tonnes per day, which would decrease the life of mine but in turn generate an important contribution to the economic value of the project.”

The project execution plan, which requires an investment of close to US$ 18 million, considers starting development in November 2020. Construction work will last two years, but ore will be sent to the processing plant after the ninth month as the project ramps up to full production.

MINERA TRES VALLES WAS DISTINGUISHED FOR ITS WORK ON SUSTAINABILITY MATTERS IN THE NEW VERSION OF THE COQUIMBO OPEN MINING DAY

MINERA TRES VALLES WAS DISTINGUISHED FOR ITS WORK ON SUSTAINABILITY MATTERS

IN THE NEW VERSION OF THE COQUIMBO OPEN MINING DAY


 

The third version of the “Coquimbo Open Mining Day”, organized by the Regional Secretary of the Ministry of Mines, had as one of its purposes, to establish cooperation and interaction instances in order to consolidate a productive and sustainable mining industry in the region.

On Thursday 12t h December, 2019, in the facilities of the Enjoy Hotel and Casino of Coquimbo, the “Open Mining Coquimbo 2019” convention took place, gathering people from local small, medium and large mining companies in order to improve the services and productive techniques associated to the industry.

After a day of informative talks and various exhibits from mining companies and enterprises that provide services to the industry, the closure dinning took place, instance that had the presence of the Mining Minister, Baldo Prokuriça. In this opportunity, three companies of the region were awarded with a recognition, being Compañía Minera Teck Carmen de Andacollo, Minera Los Pelambres y Minera Tres Valles.

In the case of Minera Tres Valles, the award given during the “Coquimbo Open Mining Day” distinguished the work made by Minera Tres Valles in Sustainability matter, which is bases in three main pillars, safety, environment and communities. Among the work done by the company, it stands out its development foundation, Fundación Tres Vales, the framework agreement with the local miners (which lends for free exploitation points in MTV ́s mining concessions), and the support for the development of the Santuario de la Naturaleza Raja de Manquehua- Poza Azul, which is an iconic site and it is a great heritage contribution for the county of Salamanca.

According to Sebastián Cortés, Sustainability Manager of Minera Tres Valles, this distinction “fills us with pride and strengthens our will to continue working for the development of our communities, establishing measures that contribute in a tangible way to their wellness and allow the generation of instances of growth through the strengthening of their capacities and resources. As a company we have the belief that a transparent and direct dialogue makes us forge confidence relationships that bring benefits to us and the local communities”.

MINERA TRES VALLES CLOSES US$ 45 MILLION DEAL WITH ANGLO AMERICAN

MINERA TRES VALLES CLOSES US$ 45 MILLION DEAL WITH ANGLO AMERICAN

On Thursday, December 12th, the representatives from Anglo American in Chile and the CEO of Minera Tres Valles executed the last contract of the financial package corresponding to the secured loan of US$ 45 million, funds that were officially received on December 19th

The financial package was announced by Sprott Resource Holdings Inc. in August 2019, when the mandate letter with Anglo American Marketing Limited (“AAMLUK”) and GAM Kimura Commodity Trade Finance Fund Limited (“Kimura”) was executed. This deal will provide MTV an important investment amount that will be key in the development and expansion of the company.

Through this financing package, Minera Tres Valles will start the Inclined Block Caving project for its underground mine deposit, Papomono, as well as fund the final costs of the chloride media leaching project.

MTV’s CEO, Luis Vega Muñoz, highlighted that the closing of this financing package “will allow Minera Tres Valles to optimize its production and strengthen the operation, capturing the high potential that our project has. Nowadays, the medium mining industry in Chile plays an important role in the country’s economy, and projects like ours prove that it is possible to produce in a responsible way through maintaining strong community relations and making investments in optimizing its processes.”

IN ILLAPEL: NATIONAL MINING SOCIETY (SONAMI) AWARDS SAN LORENZO PRIZE TO MINERA TRES VALLES

IN ILLAPEL: NATIONAL MINING SOCIETY (SONAMI)

AWARDS SAN LORENZO PRIZE TO MINERA TRES VALLES

 

The National Miners Day celebration was jointly organized by Sonami and the Illapel Mining Association, having as special guests the Mining Minister, Baldo Prokuriça, and the Ministerial Regional Secretary, Roberto Vega.

By awarding the “San Lorenzo” prizes, the National Mining Society annually recognizes the players that produce a significant contribution to national mining activity. During 2019, this recognition was given to Minera Tres Valles for its contribution to promoting production in the region, through the optimization of processes and the building of a collaborative agreement with small-scale miners from the area.

The award was presented by Diego Hernández, president of Sonami, who highlighted the significance of delivering the San Lorenzo prizes to representatives of local small, medium and large scale mines. “The distinction awarded to Minera Tres Valles, as a medium-scale company, aims to highlight the absolute importance of this industry in Chile, for what it produces and exports, as well as for the contribution it makes in the places where it is located, as a creator of jobs and as a destination for local suppliers.”

As for the Minister of Mining, Baldo Prokuriça said that as a ministry “we wanted to celebrate Miners Day here in Illapel to award the people that are in different areas and levels of mining who give a better quality of life to many families, since without mining there is no prosperity, welfare or development.”

On this occasion, the Ministerial Regional Secretary of Mining, Roberto Vega, presented to Minera Tres Valles a distinction for “its contribution to small mining”, an effort that is based on promoting the supply chain through delivering shared extraction points, leasing mining rights and executing a purchasing agreement with local small-scale miners.

For Luis Vega, CEO of Minera Tres Valles, receiving “this recognition, as part of the celebration of San Lorenzo, fills us with pride as a Company, as we have strived to become a mining project with high standards in terms of operations, safety, sustainability, innovation, and the progression of our home turf. We appreciate this distinction that invites us to strengthen our current role in the territory and continue working for the development of the region and our country.”

SRHI INC. COMPANY. ANNOUNCES US$45M FINANCING PACKAGE

SRHI INC. COMPANY ANNOUNCES US$45M FINANCING PACKAGE

 

Includes Prepayment Facility and Offtake Agreement for its Minera Tres Valles Copper Project

TORONTO, Aug. 14, 2019 (GLOBE NEWSWIRE)

SRHI INC. COMPANY and its 70% owned subsidiary Minera Tres Valles (“MTV”) are pleased to announce the execution of an investment committee (“IC”) approved mandate letter with Anglo American Marketing Limited (“AAML”) and a fund under the investment management of Kimura Capital LLP (“Kimura” and together with AAML, the “Lenders”), to provide a US$45 million secured prepayment facility (“Facility”) and offtake agreement (“Offtake”) to be utilized for the expansion of the MTV copper project located in Chile.

“We are very excited to announce this significant financing package, and to commence on the final stage of our expansion plans,” stated Michael Harrison, Interim President and CEO of the Company. “This investment is a key part of the development of MTV, and has strategic importance for the future of the Company.”

“Kimura have been providing short term collateral backed lending to MTV since January 2017 and the expansion of the MTV project is an exciting opportunity with lots of potential and, as lenders, we are looking forward to a growing partnership with MTV and SRHI,” said Mike Fitzgerald, Portfolio Manager at Kimura.

“We are pleased to welcome AAML and continue working with Kimura as we enter the next phase of growth at the mine. The team at MTV has been working hard to advance our expansion plans and as the Facility moves to close, we will mobilize the underground development contractor,” stated Luis Vega, CEO of MTV.

The Facility will provide MTV with net new financing of US$25 million to further expand the Don Gabriel open pit mine, construct and develop the incline block caving method for the Papomono underground deposit and fund final costs associated with the salt leach project all of which are detailed in the Technical Report published in December 2018. An amount of US$5 million will also be used to repay debt financing previously provided by the Company to MTV.

Key Terms of the Facility and Offtake

  • US$45 million in principal with a 12 month availability period
  • Term of 4 years
  • Interest rate of 3-month USD LIBOR plus:
    — 8.00% per annum for up to 12 months depending on certain conditions
    — 6.25% per annum thereafter
  • Repayable in 12 equal quarterly instalments commencing the first month following the 12-month grace period commencing on the closing date
  • Early repayment flexibility
  • Copper price participation mechanism if LME cash price monthly average is above US$6,600/mt
  • The Lenders will have offtake rights to purchase up to 100% of copper cathode production at MTV
  • The Facility and Offtake remains subject to satisfaction of customary conditions, including:
  • Customary closing legal due diligence to the satisfaction of the Lenders;
  • Receipt of all necessary shareholder and regulatory approvals; and
  • Completion of formal documentation and perfection of security.
  • Three Keys Capital Advisors LLC and Next Meridian LLC acted as financial advisors to MTV in connection with the Facility and the Offtake.

 

About MTV
MTV is an operating mining complex located 300 kilometers northeast of Santiago, Chile in Region IV near the town of Salamanca. MTV comprises two main deposits: Papomono (underground) and Don Gabriel (open pit). The mine is currently operating and producing high-grade copper cathode. The mine has significant infrastructure in place with a crushing and processing plant with nameplate capacity of 7,000 and 6,000 tonnes per day, respectively. The plant is designed to produce up to 18,500 tonnes per annum of LME Grade 99.999% copper cathodes. For more information about MTV, please visit https://www.mineratresvalles.com.

 

About SRHI INC. COMPANY.
SRHI acquires and grows a portfolio of cash-flowing businesses and businesses expected to cash flow in the natural resource sector. Based in Toronto, SRHI is part of the Sprott Group of Companies and seeks to deploy capital to provide our investors with exposure to attractive commodities. For more information about SRHI, please visit www.sprottresource.com.

About Anglo American
Anglo American is a leading global mining company whose products are the essential ingredients in almost every aspect of modern life. Its portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, more electrified world and that meet the fast growing consumer-driven demands of the world’s developed and maturing economies. With people at the heart of its business, Anglo American uses innovative practices and the latest technologies to discover new resources and mine, process, move and market its products to customers around the world – safely, responsibly and sustainably.

 

About Kimura

Kimura Capital is a UK based investment Manager specialising in the global Commodity Trade Finance business. Kimura specialize in providing tailor-made financing solutions for small to medium commodity producers. Kimura can look at transactions across the globe in the agriculture, metals and energy sectors and have assembled an experienced team of commodity professionals.

For more information click here

MINERA TRES VALLES’ METALLURGY SUPERINTENDENT PRESENTS AT INTERNATIONAL SEMINAR ON HYDROMETALLURGICAL PROCESSES

MINERA TRES VALLES’ METALLURGY SUPERINTENDENT
PRESENTS AT INTERNATIONAL SEMINAR ON
HYDROMETALLURGICAL PROCESSES


Hydroprocess 2019 was jointly organized by the University of British Columbia, the University of Antofagasta, and the Chilean company, Gecamin.

The 11th International Seminar on Hydrometallurgical Processes, referred to as Hydroprocess 2019, was held from the 19 to the 21 of June at the Hotel Sheraton in the city of Santiago. It addressed principal innovations in hydrometallurgical processes for metals and nonmetals mining.

With close to 300 attendees and more than 70 technical speakers, the 2019 edition of the seminar spoke about the processes and challenges that arise in hydrometallurgy within the mining industry, making reference to developing new materials and technologies along with optimizing operations.

Eduardo Hasan Soto, Metallurgy Superintendent at Minera Tres Valles, was one of the 27 presenters who belongs to a mining operation that formed part of the Hydroprocess seminar. It was an opportunity to show the audience the scope of his research on “Copper Leaching from Sulfide Ore in Acidic-Chloride Media”, which highlighted the addition of salt to the copper extraction process.

Leaching in chloride media is a project that has been developed since 2015 by the Research and Development team at Minera Tres Valles. It has optimized the production process by decreasing sulfuric acid consumption and increasing copper recovery while shortening the reaction kinetic cycle. The salt leach project is currently in its implementation stage, which requires various reconditioning procedures in the agglomeration, solvent extraction and electro-obtention processes.

Minera Tres Valles has been one of the first companies to bet on developing the process of leaching with chloride media to extract copper. Its experienced research team and up-to-date facilities have made it become an important source of innovation for the Chilean mining industry, being a recurring destination for other companies that are in the planning stage of adding sodium chloride to their production process.

For Eduardo Hasan, “implementing this technology has positioned Tres Valles as a type of role model in the area of leaching copper sulfides by using sodium chloride as an oxidizing agent. Although sodium chloride leaching has research dating back from the 1990s, today there are only three companies that are in some stage of implementing this technology, Minera Tres Valles being one of them.

The merit of Tres Valles’ project stems from having developed this technological innovation with modest resources in comparison to large-scale mining companies (the project cost at BHP’s Spence mine was US$ 220 MM; the estimated cost of Minera Zaldívar is US$ 170 MM; while the cost of our project is valued at only US$ 7 MM). Additionally, all of our pilot and semi-industrial studies have been carried out by our own staff, forming a “know how” of interest to other medium-scale mining companies.

MANQUEHUA COMMUNITY MEMBERS AND SALAMANCA COUNTY AUTHORITIES VISIT DON GABRIEL

MANQUEHUA COMMUNITY MEMBERS AND SALAMANCA

COUNTY AUTHORITIES VISIT DON GABRIEL OPEN PIT


The group of 16 people was composed of social leaders and community members, as well as councilors and representatives from the Municipality of Salamanca.

Last Thursday, March 27th, Manquehua community members were given a tour of the Don Gabriel Open Pit operational area. This presented an opportunity where the community could discuss any feelings of disagreement or concern regarding the development of the deposit.

For the Neighborhood Council President, Viviana Varas, “this activity has had a positive impact; we left feeling considerably more at ease as neighbors, convinced that we have achieved something positive for the community. We came to an agreement that we want to work alongside the company in order to reach a state of tranquility as neighbors.”

Meanwhile, the Municipal Manager of the county of Salamanca, Victor Araya, highlighted that “these instances help to build trust, as many of the community’s concerns can be resolved through bettering communications between the Mining Company and the members themselves, and they get to see how they could be benefitted by working alongside one another.”

This site visit was part of the community development program implemented by Minera Tres Valles, where close working ties are cultivated with the community members that are directly affected by the Company.