Mining Intelligence and News
Peru

Mallay Mine

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Categories

Overview

Mine TypeUnderground
StatusCare and Maintenance
Commodities
  • Silver
  • Lead
  • Zinc
  • Gold
Mining Method
  • Bench & Fill
  • Overhand Cut & Fill
SnapshotThe Mallay mine and processing plan are currently in care and maintenance mode. Premier Silver intends to conduct a thorough review of the resource base and existing mine development with a plan to bring the historical resources and reserves into current estimate status under National Instrument 43-101 and create a new mine plan that will incorporate bulk tonnage underground mining methods. This will, in turn, lead to lower mining costs and potentially greater output.

Owners

SourceSource
CompanyInterestOwnership
Premier Silver Corp. 100 % Indirect
The 10,562.4-hectare Tres Cerros Au-Ag Project, Mallay Mine and processing plant are 100% owned by Premier Silver Corp.

StraightUp Resources Inc. is pleased to announce that it has entered into a right of exclusivity agreement with Premier Silver Corp.

The ROE with Premier provides that the Company and Premier will exclusively negotiate an agreement for a period of 60 days, whereby StraightUp will acquire all of the outstanding shares of Premier from the current shareholders.

Deposit type

  • Epithermal
  • Replacement
  • Vein / narrow vein
  • Mesothermal

Summary:

Mallay is considered an epithermal deposit of silver, lead, zinc and limited gold values.

Mallay is a fracture-filling and replacement-type mesothermal deposit, with Ag-Pb-Zn mineralization. Many of the mineralized structures are located in quartz arenites from Farrat Formation, while another part is emplaced in Jumasha limestones. The main structure is Isguiz, emplaced in the north flank of the anticlinal of the same name. From here, a series of tensional veins run E-W. In Jumasha limestone, further north, is the Pierina veins system, with similar mineralization, but with the occurrence of gold.

The exploitation of ore is primarily focused on the following main ore structures: Isguiz body-vein (silver, lead, zinc), Pierina vein (gold), MarĂ­a vein (silver) and Fortuna (skarn type lead, zinc and silver).

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityUnits2018201720162015
Lead t 1,7684,0617,3837,193
Zinc t 4,1517,10210,4639,173
All production numbers are expressed as metal in concentrate.

Operational metrics

Metrics2018201720162015
Ore tonnes mined 92,450 t170,519 t204,035 t158,124 t

Production Costs

CommodityUnits20182017
Cash costs (sold) Lead USD 1,603 / t   1,889 / t  
Cash costs (sold) Zinc USD 2,284 / t   2,416 / t  
Cash costs (sold) Silver USD 11.5 / oz   13.3 / oz  

Financials

Units20182017
Capital expenditures M USD 1.8   1.8  
Revenue M USD 16.7   36.7  
Operating Income M USD -4.5   0  
Gross profit M USD 1.4   4.4  
Pre-tax Income M USD -4.6   -0.1  
After-tax Income M USD -4.6   -0.2  

Heavy Mobile Equipment

Fleet data has not been reported.

Aerial view:

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