PERU Vancouver-based NORTHERN PERU COPPER CORP. has received a preliminary economic assessment for its 100%-owned Galeno copper-gold project that puts the initial capital expenditure at US$852.6 million to develop an open pit and 90,000-tonnes/day mill. The project is located in the Yanacocha District in the northern part of the country.
The study indicated that production would average 144,000 tonnes of copper in concentrate for 20.7 years. Annual byproduct production would average 43,000 oz of gold, 2.0 million oz of silver and 1,900 tonnes of molybdenum. The assessment included other numbers such as 665 permanent jobs, 2,290 construction jobs and US$1.2 billion to be paid in taxes, government royalties and employee profit sharing payments. Cash costs net of byproduct credits would average US$0.486/lb of copper.
Northern Peru completed the Galeno infill drilling program in May, and an updated 43-101 mineral resource estimate will be ready later this month. A prefeasibility study is currently underway and is expected to be completed during the fourth quarter of 2006.
A brief description of the Galeno deposit is posted at www.NorthernPeru.com.