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Bear Creek looking to extend life of Peru project, cut capex

Bnamericas

Canada's Bear Creek Mining is looking to extend the life of its Corani silver project in Peru to more than 18 years instead of the 15 years currently planned, general manager Andrés Franco Longhi told BNamericas. 

A new preliminary economic assessment of the greenfield project in Puno region is being carried out and the renewal of some permits that have expired is pending. Construction is expected to start in 2025, Franco said. 

Capex for Corani is US$579mn, according to the latest estimate from 2019, but with price increases and the pandemic the figure is expected to rise by 20% at the most, Franco said previously.

The new PEA is focused on the "oxide opportunity" and the hope is to reduce initial capital requirements.

"The reduction in capex depends on the opportunities and the form of production… that we’re still finishing designing. I cannot give an amount at the moment but there will be improvements in the entire context of the project, especially technological and environmental," Franco said.

Corani is expected to produce an average of 16.3Moz silver in the first three years. For the 15 years, annual payable metal production is put at 9.6Moz of silver, 98Mlb (44,450t) of lead and 69Mlb of zinc.

Regarding financing, Franco said "there are always interested parties" because it is one of the largest deposits of its type in the world.

"At this stage, where prices are on the rise, this also means a new financial assessment from different perspectives, future sales, partnerships and direct financing. We are currently hoping to complete the preliminary economic assessment and thereby define the financial strategy," he said. "We hope that the good disposition [of the energy and mines ministry] continues with the new minister. We hope to start as soon as possible… we only hope that the bureaucratic processes in Peru are less complex, with more specialists… with specific concern for the issue of updates. We depend largely on them to confirm that we will begin work in 2025," Franco said.

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