Mining Intelligence and News
Peru

Ollachea Project

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Overview

Mine TypeUnderground
StagePermitting
Commodities
  • Gold
Mining Method
  • Longhole open stoping
Backfill type ... Lock
Mine Life... Lock
SnapshotThe Ollachea project is underground mine and processing plant for producing doré bars. The project will start at a production rate of 1500 tpd and treat mineralized material from the higher-grade area. Production will double in year 4 when lower grade mineralization will be mined.

Ollachea is shovel-ready, having obtained all the necessary environmental and construction permits.

The Minera IRL could lose the Ollachea Project if it cannot refinance the Bridge Loan. On 14 November 2023, the repayment deadline for the debt with Peru’s Development Bank (COFIDE) expired. The Minera IRL is engaged in advanced due diligence and negotiations with potential investors, aiming to complete a transaction that enables the development of the Ollachea Gold Project and the repayment of the debt with COFIDE.

Owners

SourceSource
CompanyInterestOwnership
Minera IRL Ltd. 100 % Indirect
The Minera IRL Ltd. owns the Ollachea Project through Compañía Minera Kuri Kullu S.A., Minera IRL SA’s subsidiary.

Contractors

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Deposit type

  • Vein / narrow vein
  • Orogenic

Summary:

The Property hosts orogenic-style gold (Au) mineralization at the Property, and quartz veining in the Minapampa area is the principal area of interest. Orogenic gold deposits often form in clusters and are mined as both open-pit lower-grade high-tonnage mines and higher-grade lower-tonnage underground mines. Clusters of orogenic deposits frequently align along regionally significant structures.

Orogenic Au deposits are often associated with greenschist to amphibolite grade metamorphism. Au is often concentrated in quartz lodes formed in brittle structures and can be associated with other elements such as Sb, As, Te and W.

Outcropping geology at the Property is dominated by sheared metasedimentary units, including phyllite, and graphitic slate and shale. Metasediments have a well-developed, eastnortheast trending, and north dipping cleavage that approximately mirrors regional thrusting.

Intrusions of varied age and composition have interrupted metasedimentary units. Metasedimentary units have been altered with weak but pervasive sericitization. Alteration is not apparently related to mineralization.

Gold mineralization at Minapampa is principally developed in phyllite between the Ollachea and Paquillusi thrust faults. The package of mineralized metasediments (Mineralized Package) is approximately 200m thick. Two zones of mineralization have been defined in the Mineralized package: Minapampa and Concurayoc.

Gold mineralization in the Mineralized Package is typically associated with pyrrhotite, arsenopyrite, pyrite, and minor chalcopyrite in quartz veins sub-parallel to cleavage, and as disseminations.

MKK has observed the following associations of sulfide with gold at Minapampa:
- When coarse pyrite occurs without other sulfides it is often indicative that gold is not present.
- Free gold is often observed in areas where coarse crystalline arsenopyrite is present.

Quartz veining in the Mineralized Package is not always auriferous, veins range from less than 5 mm to up to 40 cm across. Boudinage related to the thrust front has interrupted the continuity of quartz veining.

Mineralization at Minapampa has been traced at surface for 900 m along strike, and mineralization at the Concurayoc zone has been traced at surface for 400 m along strike. Drilling has traced mineralization to depths of up to 200 m from surface. The 900 m zone between Minapampa and Concurayoc is weakly mineralized.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityUnitsLOM
Gold oz 876,200
All production numbers are expressed as metal in doré.

Operational metrics

Metrics
Daily ore mining rate  ....  Subscribe
Daily processing rate  ....  Subscribe
Daily processing capacity  ....  Subscribe
Hourly processing capacity  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2021 study.

Production Costs

CommodityUnitsAverage
Cash costs Gold USD  ....  Subscribe
Total cash costs Gold USD  ....  Subscribe
All-in sustaining costs (AISC) Gold USD  ....  Subscribe
Assumed price Gold USD  ....  Subscribe
* According to 2021 study / presentation.

Operating Costs

CurrencyAverage
UG mining costs ($/t milled) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2021 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Expansion CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
UG OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 126.5
Refining and treatment costs $M USD  ......  Subscribe
G&A costs $M USD 35.2
Total OpEx $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
Operating margin (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 5% $M USD  ......  Subscribe
Pre-tax NPV @ 10% $M USD  ......  Subscribe
Pre-tax NPV @ 7% $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 7% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Aug 27, 2021
....................... Subscription required ....................... Subscription required Subscription required Aug 27, 2021
....................... Subscription required ....................... Subscription required Subscription required Sep 8, 2024

Aerial view:

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