Inca de Oro Copper-Gold Project and Carmen deposit, Chile

In Chile, PanAust owns a 61.06 per cent beneficial interest in the Inca de Oro Project through a Chilean incorporated joint venture company, Inca de Oro S.A. Codelco has a 34 per cent interest in Inca de Oro S.A., while an independent private company holds 5.55 per cent beneficial interest. The Company has a 100 per cent interest in the nearby Carmen deposit.

Inca de Oro is a porphyry copper-gold deposit located near the town of Inca de Oro in the Atacama Desert, Chile. The Carmen deposit, approximately 14 kilometres southwest of Inca de Oro, is near-surface and presents an early Iron Oxide Copper Gold (IOCG) phase overprinted by later porphyry-style mineralisation.

The Inca de Oro sulphide feasibility study concluded that the cost profile after the first five years of production needed to be improved for the Inca de Oro Project to be economically robust.

An extended Inca de Oro/Carmen feasibility study considered a range of project scale options from 9Mtpa to 18 Mtpa. Project optimisations demonstrate that a reduced mill throughput rate of approximately 9Mtpa and a higher copper cut-off grade should enhance the economic return through lower capital and operating cost structures.

As of September 2014, PanAust are finalising the Inca de Oro study to a feasibility standard and plans to complete the Environmental Impact Assessment (EIA) report once acceptable agreements have been reached on a number of commercial matters that will have a material impact on the viability of the Project and any investment decision. The EIA approval process is expected to take approximately 18 months from the date of submission.

At the Carmen deposit, a program of resource extension and infill drilling was concluded in early 2014 which aimed to lift the largely inferred Mineral Resource into Measured and Indicated categories. PanAust's strategy is to demonstrate that incorporating the mining schedule of mineralisation from Carmen will materially enhance the economics of the Inca de Oro Project.


For more detailed information regarding the Inca de Oro Copper-Gold Project and Carmen deposit, please see PanAust’s quarterly reports.