Canadian Mineral Exploration Company, Sulliden To Start Gold and Silver Mine Exploration in Peru, 2011
June 21st, 2009
Sulliden Exploration Inc., a Canadian mineral-exploration company, aims to start its gold and silver mine in Peru in 2011, said Javier Fernandez-Concha, the company’s manager in the South American nation.
The Montreal-based company’s $120 million Shahuindo mine is expected to produce 200,000 ounces of gold a year, Fernandez- Concha said today in an interview in Lima. The mine, near Newmont Mining Corp.’s Yanacocha and Barrick Gold Corp.’s Alto Chicama mines in the northern Andes, has resources of 1.5 million ounces of gold and 35 million ounces of silver, he said.
“We’ve raised $7 million in the markets to finance drilling this year,” said Fernandez-Concha. The company plans to sell additional shares to raise cash to build the mine, he said. “A feasibility study will be ready next March, and then it’ll take a year to line up permits.”
About 300 mining companies are developing precious- and base-metals deposits in Peru, the world’s biggest silver producer and the third-largest in copper and zinc. Exploration for precious metals is being driven by a 26 percent rally in silver prices and a 5.7 percent jump in gold this year.
Sulliden, whose shareholders include investment funds Aberdeen International and Socrate Inc., has 800 hectares (1,976 acres) of exploration concessions in Peru and an option to take an additional 12,000 hectares, Fernandez-Concha said.
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