Musto plans 1993 completion of Bajo feasibility study

By the second quarter of 1993, International Musto Explorations (TSE) expects to complete a feasibility study which it hopes will bring the technical and economic potential of the Bajo de la Alumbrera project “into sharp focus.”

The world-class porphyry copper-gold deposit is in northwestern Argentina, close to the Chilean border and within the same mineral trend as all major Chilean copper deposits.

Discovered in 1949, the deposit was never developed because Argentina’s nationalistic policies discouraged foreign investment. But a change of government in 1989 brought about sweeping reforms that are now making investment in the South American country a more attractive proposition. Through a successful bidding process, Musto acquired exclusive development rights to the Alumbrera deposit earlier this year. The company can earn a 100% interest upon completion of the feasibility study.

Since taking on the project, Musto initiated a geologic and minable reserve analysis (completed by Mintec) using existing drilling information from 99 holes totalling 20,265 metres. Results at a 0.2% copper cutoff indicate 337 million tonnes of proven and probable reserves grading 0.53% copper and 0.7 grams gold per tonne. The overall strip ratio is about 1-to-1, with even lower strip ratios in early production years.

The company now has two Longyear 44 diamond drill rigs on site, and over 1,000 metres of a planned 8,100-metre program have been completed. The bulk of the drilling, 4,900 metres, is directed toward reserve definition. The remainder will be for a combination of pit geotechnical and reserve definition and metallurgical coring.

Musto expects the reserve definition drilling will increase proven and probable minable reserves into the range of 500 million tonnes at comparable grades.

A number of Canadian and American companies are working on various aspects of the feasibility study. Mine and mill design work, costing and overall feasibility study work (including concentrate shipping and project financial analysis) were awarded to Fluor Daniel Wright of Canada.