Canadian Mining Journal

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SILVER-GOLD: Silver Wheaton pays $140M for Cotabambas stream



PERU – Silver Wheaton and Panoro Minerals, both of Vancouver, have struck a US$140-million deal covering silver and a portion of the gold streams from Panoro’s Cotabambas copper-gold mine in the Cuzco region. The project is at the advanced exploration stage.

Silver Wheaton will pay US$140 million for 100% of the silver and 25% of the gold streams from Cotabambas until 90 million oz of silver equivalent is reached. The stream will then drop to 66.7% of the silver and 16.7% of the gold production. Once certain conditions are met, Silver Wheaton will advance $14 million over nine years to Panoro.

The Cotabambas project has an indicated of 117.1 million tonnes grading 0.42% Cu, 0.23 g/t Au, and 2.74 g/t Ag, containing 1.09 billion lb of copper, 0.86 million oz of gold, and 10.3 million oz of silver. The inferred resource totals 605.3 million tonnes at 0.31% Cu, 0.17 g/t Au, and 2.33 g/t Ag, containing 4.16 billion lb of copper, 3.38 million oz of gold, and 45.37 million oz of silver.

The updated preliminary economic assessment calls for a mill throughput of 80,000 t/d of oxide, mixed and sulphide mineralization in a conventional copper porphyry flotation concentrator. Over the 19-year mine life, estimated payable metal is approximately 2.6 billion lb copper, 1.6 million oz gold, and 17.3 million oz silver produced at a cash cost of US$1.22/lb copper.

More information about the Cotabambas project is posted at Panoro.com/s/Cotabambas.