A positive environmental impact study (EIS) of the Tambogrande TG-1 project in northern Peru has been delivered by MANHATTAN MINERALS of Vancouver to that country's Ministry of Energy and Mines.
The Tambogrande TG-1 property contains a precious metals and a massive sulphide deposit. The gold deposit has probable reserves of 8.06 million tonnes grading 3.5 g/t Au and 67 g/t Ag. The sulphide portion is estimated to contain 49.2 million tonnes of probable reserves grading 1.6% Cu, 1.0% Zn, 0.6 g/t Au, and 26 g/t Ag. The project is expected to have a 17-year life (including construction, open pit mining and closure) and would cost US$405 million to complete.
The feasibility study considered first building a 7,500-tonnes-per-day gold plant, which would produce 262,000 oz Au and 3.2 million oz Ag per year. The cash operating cost, after silver credit, may be less than US$83 per ounce of gold. The plant would expand later to 20,000 tonnes per day and become a copper-zinc producer. The annual rate would be 85,000 tonnes Cu and 40,000 tonnes Zn contained in concentrates. The cash operating cost is estimated at $0.49 per lb Cu, net of zinc and precious metals credits.
Manhattan's land holdings are surrounded by fertile agricultural land. As part of its development, the company had to ensure that it would not take any water for the project from the existing irrigation infrastructure. Furthermore, up to 1,000 dwellings will be relocated to accommodate the pit. The local citizens have had considerable input into the planning of Tambogrande, and they anticipate 350 new mining jobs and 1,750 indirect jobs.
Visit www.manhattan-min.com and see the 2001 annual report for detailed information.
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