Volcan Compañía Minera S.A.A. is a subsidiary of Glencore AG, which is a subsidiary of Glencore Plc., owner of 63% of common class A voting shares and an economic interest of 23%, excluding treasury shares.
Compañía Minera Chungar S.A.C. is a wholly-owned subsidiary Volcan Compañía Minera S.A.A., and has two mining units, Animon and Alpamarca.
In Q4 2022, Glencore commenced a process to dispose of its 23.3% economic interest in Volcan, which is ongoing. As a result, the carrying amounts of Volcan assets and liabilities as at 31 December 2023 and 31 December 2022 are classified as held for sale.
Summary:
Chungar encompasses the Islay and Animon mines and the Esperanza deposit. Animon’s hydrothermal polymetallic mineralisation is hosted in structurally controlled veins, rich in zinc, lead and some silver. Islay’s mineralisation is silver-rich with subordinated lead and zinc and hosted in breccia-type fissure fill. Esperanza’s cordilleran polymetallic mineralisation is located approximately 600 m below current mining operations and consists of Zn and Cu-rich replacement mantles, hosted in Cretaceous limestones.
The mineralization in Islay comprises a breccia-type fissure fill, mainly with silver mineralization, with subordinated lead and zinc, Animon is a hydrothermal polymetallic deposit consisting of mineralized structures probably related to Miocene aged monzonite dykes principally within, but not confined to the Huaron anticline.
Animon Mine is hydrothermal polymetallic deposit (hosting silver, lead, zinc, and copper) consisting of mineralized structures probably related to Miocene aged monzonite dykes principally within. Mineralization is encountered in veins parallel to the main fault systems, in replacement bodies associated with the calcareous sections of the conglomerates and other favourable stratigraphic horizons, and as dissemination in the monzonitic intrusions at vein intersections.
Mineralization occurs mainly in veins but also in “mantos” (stratiform deposits) and replacement deposits. Mineralized veins vary from a few centimetres to up to 10 metres wide, and may extend along strike for up to 1,800 metres. Most of the structures show open mineralization at depth and have excellent exploration potential.
The first pulse of mineralization was associated with the emplacement of intrusive bodies and the subsequent opening of structures, during which zinc, iron, tin, and tungsten minerals were deposited. This was followed by a copper, lead, and silver rich stage, and finally by an antimony/silver phase associated with quartz.
The average width of the Islay vein is around 4.00 metres, it outcrops at surface and was exploited in small open pits. At the moment, it is being prepared for its next stage as an underground operation. Diamond-drilling has determined an average resource grade of 0.1%Cu, 1.0%Pb, 1.4%Zn and 8.7oz Ag/mt.