Latin Resources (ASX: LRS) continues to push the flagship Guadalupito Iron and Mineral Sands project in Peru ahead at speed, with the latest positive news is that mineral sands experts Ausenco has been appointed to undertake a Scoping Study.
To put an approximate time frame on deliver, Latin Resources said that the study will be nearing completion by the end of 2011.
Latin has only just began to scratch the surface of the potential at Guadalupito, and in May the company announced a conceptual exploration target of 2 billion tonnes of mineralised sediment, (within a range 2.0-2.6 billion tonnes).
A highly anticipated maiden Inferred JORC Resource is expected to provide a sense as to just how large this Guadalupito project is shaping up to be, with Snowden's on the job and forecasting to deliver the study as soon as next month.
The latest results show areas of higher grade heavy mineral content provide tantalising promise as to the potential for magnetite with coincident gold and heavy minerals including low iron andalusite, a variety of titanium minerals, zircon and rare earth element bearing minerals.
In Guadalupito, Latin Resources could be on the cusp of a massive multi commodity project with good potential for low cost mineral processing. Previously reported mineralogical test results show clean grains of liberated minerals which indicate potential for low cost treatment.
Guadalupito is not only a iron sands project, but also a world class multi-commodity mineral sands and gold project.
The Scoping Study brief
Chris Gale, managing director of Latin Resources, commented on the appointment of the consultants, and said, “Latin is pleased to engage Ausenco; a well–respected company with proven mineral sands experience who are very familiar with the Peruvian resources sector.
"Their in-house expertise and knowledge of the local conditions bode well for a successful study and a positive outcome for our shareholders.”
The Scoping Study brief consists of the following:
The Mining Operation
Establish the scale of mining suitable for the project taking into account:
Development of early cash flow, primarily on the basis of a simple 10 Mt/a mining operation with a magnetite product;
Development of an early “proof of concept”;
Staged establishment of a mining operation in the area;
Access to a portion of the deposit is well advanced to the remaining portion of the deposit;
An eventual target, within 3 to 5 years, of developing a 30 to 35 Mtpa mining operation to deliver magnetite to the smelter in Chimbote as one of several potential options, including pelletizing and export to Asia;
Understanding the economics of the extraction of the minor minerals and elements and the most suitable place in the project for their extraction to commence;
Determine the mining method suitable for the deposit;
Examine suitability of existing infrastructure and suggest likely required upgrades particularly electricity and fresh water;
Determine transport options including an assessment of the suitability of the Chimbote port facilities to receive bulk concentrative via road (limits on roads, bridges etc., and the export capacity of the port);
Transportation of concentrate by road or pipeline from the Guadalupito mine site to the Chimbote port, separation plant or pellet plant site and the implications of slurry transportation should be understood;
Establish the operational characteristics and requirements of pelletising and concentrate at Chimbote;
Establish the operational characteristics and requirements for undertaking gravity concentration at the mine site, subsequent concentrate separation in a separate facility in Chimbote or other potential industrial site;
Develop a capital and operating estimate suitable for scenario evaluation and decision making; and
Generate a preferred project plan.