Chariot needs a little more time

Investors awaiting the completion of Chariot Resources (CHD-T) feasibility study for the Mina Justa deposit at its Marcona project will have to wait a little bit longer.

The company had given guidance that feasibility would be finished by the fourth quarter of 2007, and while it says progress is being made, it blames the new mine planning model and the departure of a key member of the consultant team for the delay.

Chariot now says the mine planning model which was changed to incorporate a vat leaching method of extraction — will be finished by the end of May 2008, with the completion of the study targeted for the end of July.

Outside of the revised mining plan, the company says all other aspects of the study are moving on schedule with preliminary capital costs for much of the project, except mine capital, now completed.

Chariot has been working on its feasibility in conjunction with financing and its environmental and social impact assessment.

President and chief executive Ulli Rath decided to take on the heavy load of doing all three, in an effort to catch the most of coppers historic high prices.

On the environmental permitting from, the company says active community support has helped to keep the process on track and the company expects to submit its report six weeks after feasibility is finished.

“Chariot has said for some months that the timing of completion of the final mine plan was the key variable in the timing of the delivery of the feasibility study, and we continue working to expedite this final element,” Rath says in a statement.

Chariot has a 70% stake in the Marcona with Korea Resources Corporation and LG Nikko Copper taking up the remaining 30%.

Its joint venture partners will buy up to 70% of the production of copper cathodes and up to 90% of the annual production of copper concentrates produced once the mine is in operation.

With a 0.3% copper cutoff, Mina Justa — the most defined and largest known deposit at Marcona — has an indicated resource of 347 million tonnes grading 0.71% copper for 5.4 billion lbs. copper, and an inferred 128 million tonnes grading 0.6% copper for 1.7 billion lbs.

And while Mina Justa will provide the bulk of the ore over the course of an estimated 13.5-year mine life (likely to be expanded in the coming feasibility study), recent drilling at Magnetite Manto, 1 km west of Mina Justa, is shaping up into a robust starter pit that will provide higher-grade ore for the first couple of years of operation.

In Toronto on May 15, Chariot’s shares fell a penny to 93 on 231,000 shares traded. The Toronto-based company has roughly 328 million shares outstanding.