A Chilean company held equally by Placer Dome (TSE) and Outokumpu Copper Resources will build a solvent extraction-electrowinning plant at the Zaldivar project in Chile.
Placer Dome says the plant, which will have an annual capacity of 125,000 tonnes of copper, will be consistent with its strategy of increasing low-cost copper output “in order to augment revenue and sustain growth.” The company intends, however, to remain principally a gold producer. An updated feasibility study by Placer Dome determined a minable reserve of 246 million tonnes grading 1.02% copper. The property also hosts a lower-grade, dump-leach reserve of 70 million tonnes grading 0.41% copper. The US$600-million operation is expected to produce 1.9 million tonnes (4,200 million lb.) of copper over a mine life of at least 17 years. Output will consist of pure copper metal produced by heap and dump leaching at an estimated average cash cost of US52 cents per lb. Production is to begin in the second half of 1995.
Construction will begin immediately at the mine site, about 175 km east of Antofagasta in the north.
Placer Dome acquired its half interest from Outokumpu for US$100 million in 1992 and will provide up to US$400 million of loan financing toward capital costs.
Placer Dome will design and construct the mine with technical input by Outokumpu, who will also market the product. The mine will be managed by a company held equally by the two majors.
In a separate development, Placer Dome has agreed to a merger plan which will rationalize ownership of the Eskay Creek gold deposit in British Columbia. If successful, the proposed share-exchange takeover bid would result in Placer Dome holding a 16% interest in Prime Resources Group (TSE), which will wholly own the Eskay Creek property.
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