Gold Fields enters Peru

South Africa’s Gold Fields (GFI-N) has agreed to acquire a 92% interest in Peruvian-based Sociedad Minera La Cima. No price was reported, as financial details were still being discussed.

Sociedad Minera owns the Cerro Corona gold-copper porphyry project and other mineral properties in region surrounding Cajamarca. The operation, which is slated to begin producing in 2.5 years, will be Gold Fields’ first modern day South American producer. The company already has some exploration properties in Brazil, Ecuador and Venezuela.

An updated feasibility study of Cerro Corona calls for production of 147,000 oz. gold and 65 million lbs. copper annually at a total operating cost of US$212 per oz. gold-equivalent, or US48 per lb. copper-equivalent. The estimates are based on prices of US$360 per oz. gold and US80 per lb. copper.

Reserves stand at 65.2 million tonnes grading 0.61% copper and 1.14 grams gold per tonne, equivalent to 397,000 tonnes copper and 2.4 million oz. gold.