Minsur to explore Santo Domingo, Nazareth tin projects this year

Peru's Minsur, which is struggling to counter dwindling production at its San Rafael tin mine, plans exploration drilling and scoping studies this year at tin projects, CEO Juan Luis Kruger said.

Minsur aims to drill 16,000m this year at the Santo Domingo property near San Rafael in Puno region, where the company has identified five vein systems after drilling 18,000m since 2014, Kruger told a conference in Lima.

Metallurgical and scoping studies are also ongoing at the nearby Nazareth property, which has estimated mineral resources of 3Mt at 1.53% tin after the company drilled 52,000m over the past two years, he said. Minsur is also studying the Quenamari and Taucané tin properties and Marta and Nazca copper deposits in Peru.

Minsur has allocated US$80-100mn capex this year as it moves ahead with its US$180mn B2 tailings project at San Rafael, which is expected to start producing 5,000-6,000t/y by the second quarter of 2018, Kruger said. B2, which has estimated reserves of 7.6Mt at 1.05% tin, finished test work at a pilot plant in the first quarter, he said.

San Rafael is expected to produce 20,000-21,000t of tin this year at cash costs of US$125/t. Tin output at the mine fell 17% to 20,224t last year from 24,223t in 2014 as ore grades declined to 2.05% from 2.48%.

Minsur's Pitinga mine in Brazil is expected to produce 6,000-7,000t of tin this year.

SOUTH AMERICAN PROJECTS

In addition to B2 and a tin discovery at Tinka Resources' Ayawilca zinc project in Peru, South America also features the Azul, São Lourenço and Arara tin projects (Brazil), and El Kenko, Catavi, Sink & Float and Siglo XX (Bolivia), according to a company presentation.

Peru is home to 8% of global tin reserves, while Brazil has 16%, according to the International Tin Research Institute. Peru produced 38% of South America's 52,000t tin output last year, while Bolivia (20,200t) and Brazil (12,000t) accounted for 39% and 23%, respectively. South America produced 16% of the world's tin output in 2015.

Minsur's Funsur smelter produced 45% of South America's 44,947t of refined tin last year with 20,224t, followed by Vinto and Omsa (both in Bolivia) with 12,106t and 3,419t, respectively, and Taboca (5,525t), White Solder (2,573t) and Coopermetal (1,100t), all in Brazil. Bolivia controls 35% of South America's refined tin market and Brazil 20%.