As Bear Creek Mining continues to search for alternatives to fund its $603 million Corani project, in Puno region, Peru, it is said that the company is looking to commence construction works by next year.
Between January and September, the mining company, based in Vancouver, is said to have invested $5.7 million on the asset. According to the recent quarterly release, $581,000 of the investment went into drilling.
Also read: Greenstone Gold open-pit mine nears completion, Ontario
Already in place, Bear Creek has made streaming deals for Cornani’s production. This includes Sandstorm Gold 1% net smelter return (NSR) royalty.
According to Paul Tweddle, Chief financial officer, metallurgical tests at the Corani deposit are expected to be concluded in the beginning of next year. Discussions on the Corani project’s funding will commence soon after the completion of tests.
When should we expect construction work on the Corani project?
He said that they are looking to begin construction works in mid 2024.
Owned by Bear Creek, Corani deposit is among the biggest fully permitted silver polymetallic deposits in the world. With a contiguous block spanning approximately 55 sq. km, the deposit is made up of 13 mineral concessions.
A feasibility study that was last updated in 2019 indicates that the assets reserves proven are capable of supporting an average annual production of metal of up to 98 million lb. of lead. It can also support 69 million lb. of zinc, and 9.6 million oz. of silver, which is payable.
It is said that the company owns Mexico’s producing Mercedes gold silver mine located in Sonora. The asset is said to have been acquired last year from Equinox Gold. The company recently reduced its production guidance from 65,000-75,000 oz of gold to 35,000 to 49,000 oz this year.
According to Bear Creek’s third quarter release, it has been trying to improve Mercedes’ geological medals. This is because the mines fell short of expectations. Furthermore, the company’s debt agreements with Equinox as well as Sandstrom have been restructured to extend present along with long term obligations to 2028.
