01. silver session - silver deposits in peru
TRANSCRIPT
Silver Deposits of Peru
� 45,000 M oz Ag mined, 25,000 M oz in the last 100 years
� Switching uses � from photography to industrial uses
A few facts about silver
� Increased investor demand
� Poor man’s gold
� Cost escalation
� Capex escalation
Not only price
Silver Deposits in Peru
� Time… specially in Peru (will not talk politics!!!)
� 70% of silver production occurs as by – product credits
� Silver is recovered from a variety of ore deposit types occurring in unrelated tectonic settings
Describing silver deposits is a challenge
Silver Deposits in Peru
� Most modern studies on ore deposits types for precious metals focus on gold
Mine Country 2010 Production
Cannington Ag - Pb - Zn Mine Australia 38.6 Moz
Fresnillo Ag Mine Mexico 38.6 Moz
A worldwide look at large silver deposits
Silver Deposits in Peru
San Cristobal Polymetallic Mine Bolivia 19.4 Moz
Antamina Cu – Zn Mine Peru 14.9 Moz
Rudna Cu Mine Poland 14.9 Moz
Peñasquito Pollymetallic Mine Mexico 13.9 Moz
Project CountryAnticipated Annual
Production Capacity (due within five years???)
Pascua Lama Chile 25.0 Moz
A worldwide look at large silver deposits
Silver Deposits in Peru
Navidad Argentina 15.0 Moz
Juanicipio Mexico 14.0 Moz
Malku Khota Bolivia 13.2 Moz
Hackett River Canada 13.1 Moz
Corani Peru 10.0 Moz
CountriesAg Production (M oz)2011 2012
Mexico 133 137
China 119 122
Peru 110 111
Australia 56 61
So where does Peru fit?
Silver Deposits in Peru
Australia 56 61
Russia 43 48
Bolivia 39 42
Poland 38 38
Chile 41 36
USA 36 34
Canada 17 17
Other 116 125
Total 748 771
Deposit CountryM oz Ag
containedGrade (g/t) Type
Lubin Poland 4370 40 Lithogene
Cerro Rico Bolivia 2000 400 Low sulphidation
Fresnillo Mexico 1860 320 Low sulphidation
Peñasquito Mexico 1850 26 Low sulphidation
Giant deposits around the world
Silver Deposits in Peru
Peñasquito Mexico 1850 26 Low sulphidation
Cerro de Pasco Peru 1725 267 Carbonate replacement
Butte USA 1410 ? Porphyry
Pachuca Mexico 1400 500 Low sulphidation
Broken Hill Australia 1330 147 Sedex
Guanajuato Mexico 1160 800 Low sulphidation
Coeur D'Alene USA 1100 341 Lithogene
Cannington Australia 761 536 Sedex
Navidad Argentina 751 127 Low sulphidation
Zacatecas Mexico 747 900 Low sulphidation
Mt. Isa Australia 723 149 Sedex
Deposit CountryM oz Ag
containedGrade (g/t) Type
Hilton Fisher Australia 711 97 Sedex
Brunswick Canada 672 91 VMS
San Francisco Mexico 670 150 Low sulphidation
Pitarrilla Mexico 644 79 Low sulphidation
Giant deposits around the world (cont.)
Silver Deposits in Peru
Pitarrilla Mexico 644 79 Low sulphidation
Gakun China 626 157 VMS
San Cristobal Bolivia 590 60 Low sulphidation
Antamina Peru 590 10 Skarn
Bingham Canyon USA 565 3 Porphyry
Pascua Chile 557 40 High sulphidation
Cobalt Canada 550 8,525 Lithogene
Greens Creek USA 549 709 VMS
Udokan Russia 540 14 Lithogene
Toquepala Peru 532 5 Porphyry
� 42 deposits account for 105 M oz Ag (± 95%) of Peru´s Silver production
� The top 10 producers account for 60% of silver production while the top 20 account for 85%
So where does silver in Peru come from?
Silver Deposits in Peru
top 20 account for 85%
MineM Oz Ag
ProducedProduction Grade (g/t)
Type
Yauli 11.2 102 Unclassified Veins
Antamina 10.8 10 Skarn
Uchucchacua 10.1 446 Carbonate Hosted
Low
A look at the top 20
MineM Oz Ag
ProducedProduction Grade (g/t)
Type
Julcani 2.4 638 Low Sulphidation
Caylloma 2.1 171 Low Sulphidation
Casapalca 2 82 Unclassified Veins
Silver Deposits in Peru
Pallancata 8.8 301 Low Sulphidation
Arcata 6.1 312 Low Sulphidation
Cerro de Pasco
5.1 63 Carbonate Hosted
Chungar 4.9 101 Unclassified Veins
El Brocal 2.9 65 Carbonate Hosted
Huaron 2.8 177 Unclassified Veins
Yauliyacu 2.5 72 Unclassified Veins
Cerro Lindo 2.4 68 VMS
Atacocha 2 85 Carbonate Hosted
Cuajone 1.9 2 Porphyry
Morococha 1.9 128 Carbonate Hosted
Toquepala 1.7 2 Porphyry
Aruntani 1.6 10 High Sulphidation
Yaruricocha 1.6 158 Carbonate Hosted
Type of Deposit2012 Production
(M oz Ag)Typical grades
(g/t) % Value from Ag
VMS 22 30 - 70 5 -10
Unclassified Veins 38 80 - 180 20 - 50
Another look at producers
Silver Deposits in Peru
Porphyries 5 1.5 - 2.5 2 - 5
Low sulphidation veins
24 100 - 600 60 - 90
IOCG 1 10 2 - 5
High Sulphidation 5 20 - 40 5 - 20
Carbonate Hosted 4 60 - 400 10 - 40
Skarns 14 6 5 -8
Property NameGrade (g/t)
M oz Ag Contained
Antamina Copper/Zinc Mine9.8 586.40
Toquepala Copper/Molybdenum Mine 4.9 532.15
Toromocho Copper Deposit7.0 478.74
Looking into resources
Property NameGrade (g/t)
M oz Ag Contained
Iscaycruz Zinc/Lead Mine185.1 134.17
Huaron Silver/Base Metal Mine166.4 116.75
Cerro Verde Copper/Molybdenum Mine 0.8 115.34
Silver Deposits in Peru
Corani Silver/Lead/Zinc Project37.2 406.70
Cuajone Copper/Molybdenum Mine 5.0 378.51
Cerro de Pasco Mine96.0 231.90
Las BambasCopper/Molybdenum/Gold Mine 3.0 166.96
Santa Ana Silver Project41.4 164.25
Los Quenuales Zinc/Lead Operation 118.2 146.68
Tambo Grande Copper/Zinc/Gold Project 28.7 135.60
El Brocal Copper/Zinc/Silver Operation 20.2 108.99
Tantahuatay Gold/Silver Project6.4 106.30
Sinchao10.2 96.25
Arcata Silver/Gold Mine406.5 92.78
ConstanciaCopper/Gold/Molybdenum Mine 2.5 92.68
Berenguela Silver/Copper Project 126.4 87.75
Pallancata Silver/Gold Mine345.8 87.13
� There are about 90 silver containing assets in Peru of which roughly 50% are in production
� The total endowment is the order of 6,000 M oz Ag and roughly 65% is in the top 20 projects and mines
So…
Silver Deposits in Peru
is in the top 20 projects and mines
Property NameGrade (g/t)
M oz Ag
Cont.Deposit type
Julcani Silver Mine643.4 13.90
Epithermal
Uchucchacua Silver/Base Metal Operation 411.9 66.50
Carbonate replacement
Arcata Silver/Gold Mine406.5 92.78
Epithermal
Looking at grades
Property NameGrade (g/t)
M oz Ag
Cont.Deposit type
Iscaycruz Zinc/Lead Mine 185.1 134.17 Carbonate replacement
PachapaquiZinc/Lead/Silver Mine 184.5 43.29
Carbonate replacement
Azuca Gold/Silver Project 179.1 80.57 Epithermal
Silver Deposits in Peru
Arcata Silver/Gold Mine406.5 92.78
Epithermal
Pucarrajo Zinc Mine402.7 18.39
Carbonate replacement
Pallancata Silver/Gold Mine 345.8 87.13
Epithermal
Shila-Paula Gold/Silver Project 290.0 10.72
Epithermal
Santa Rita Silver/Lead/Zinc Project 230.0 24.72
Carbonate replacement
Coricancha Gold Mine216.8 40.23
Veins unclassified
Yauli200.0 67.80
Carbonate replacement
Morococha Silver/Base Metal Mine 194.8 81.66
Carbonate replacement
Azuca Gold/Silver Project 179.1 80.57 Epithermal
Urumalqui Silver/Gold Project 171.0 10.69 Epithermal
Orcopampa Gold/Silver Project 167.0 10.17 Epithermal
Huaron Silver/Base Metal Mine 166.4 116.75 Veins unclassified
Inmaculada Gold/Silver Project 147.4 56.91 Epithermal
Alpamarca 137.0 17.60 Carbonate replacement
Berenguela Silver/Copper Project 126.4 87.75 Epithermal
Quiruvilca Silver/Base Metal Mine 120.5 10.95 Epithermal
� Most of the silver endowment is in Carbonate replacement deposits, porphyries, skarns
� However, epithermal veins are the main source of primary silver production and endowment
In conclusion so far…
Silver Deposits in Peru
production and endowment
� Better grades occur in epithermal and carbonate replacement bodies
� I have not looked at grades over time but its clear that grades are lower than a decade ago
Silver mining operations
Silver Deposits in Peru
� Peru is a leading silverproducer
� 40% of the production comes from primary silver mines
� 60% of the production is byproduct from base metal mines
Silver Deposits in Peru
� Peru’s silver occurrences are associated with the following deposittypes:� Carbonate replacement deposits and skarns� Low sulfidation epithermal vein deposits� High sulfidation epithermal deposits
Final comments
� High sulfidation epithermal deposits� Porphyry copper deposits
� Associated with tertiary vulcanism and intrusions in carbonate country rocks