Chiclayo Tailings is a Silver Tailings project located in the Chiclayo region in the north of Peru. It consists of over 9 million tonnes of ore, which preliminary sample testing has yielded 3-9 oz per tonne silver content and gold residue of ½ gram per tonne.
The tailings are open cast and therefore no significant mining work is required beyond breaking up the tailings´ surface structure and transporting them to the processing plant.
Agreements and heads of terms are in place to share the benefits of the mine with the local community, which would be paid $7 per tonne of ore transported through the village. All costs including transport and processing are forecast to be just under $100 per tonne. Estimating at an 80% recovery ratio, it would generate a net profit of $55 per tonne or a 35% operating margin if the grade of ore was maintained at 3-9 g/t.
The project also has an environmental benefit as the concession is granted as a clean-up operation, although this results in higher legal and operating costs to ensure project compliance.
The intention is to start production soon after the remaining due diligence and contracts are completed, at 100 tonnes per day, and would rise to 400 tonnes with the total cost of extraction and processing estimated to be approximately $60 per tonne. The intention is to build a local, wholly owned processing plant which will reduce the transport and processing costs of the project, as well as allowing us to reach the full output potential of the project and hence further enhance its profitability.
Please note: Production work on the 'Chiclayo Tailings' project has not yet started. Preliminary ore samples and contracts with the owner is all that has been achieved as of March, 2013. Further samples, testing and full geology report will be required before any more investment in this project is committed by Inca Peruvian Mining, Ltd.