Chilean copper mine — Minera’s Ivan gets green light

Having secured a commitment for US$18 million in debt financing from the Chase Manhattan Bank of Canada, Minera Rayrock (TSE) is bringing into production its Ivan copper deposit in northern Chile.

The financing, along with funds from a $28.7-million share issue, will be used to pay for development which is estimated to cost US$31.5 million, including working capital. Rayrock Yellowknife Resources (TSE), which holds a 45% interest in Minera, is guaranteeing the debt financing.

Minable reserves are 4.7 million tonnes grading 2.5% copper. These are contained in three zones — Ivan, Zar and Emperatriz — and include both close-to-surface oxide material and deeper sulphide ores. The zones will be mined by a combination of open-pit and underground methods.

Minera expects the deposit, 40 km from the port of Antofagasta, will be in production by mid-1994 at 22 million lb. of copper cathode per year. Average cost: US55 cents per lb.

The company has completed condemnation drilling on the mine and plant site, and engineering design work for Ivan’s plant facilities is under way. Work on the decline portal for the underground mine is to begin in September. The production decision is contingent on completion of a due diligence study by Chase Manhattan.