Pan American prepares US$359mn investment to extend life of Peru gold mine

Pan American Silver is preparing investments to extend the useful life of its Shahuindo open pit gold mine in northern Peru’s Cajamarca region.

The Canadian company, which also operates the Huarón polymetallic mine in Peru, plans to invest US$359mn to extend the life of the mine until 2032, adding eight years to the current schedule, according to a report sent to environmental certifier Senace.

In the report, Pan American presented the terms of reference for the second modification to the mine’s environmental impact study (MEIA), a document prepared by Knight Piésold Consulting. The report can be downloaded from the Documents box in the top-right corner of the screen.

Shahuindo produced 64,600oz of gold and 137,000oz of silver in H1. Gold production fell 11% compared to the first half of 2023 due largely to reduced heap leach irrigation rates, Pan American said in its latest results.

According to the report sent to Senace, the plan involves six modifications to current operations – two to the main components and four to auxiliary components – and four new additions. The main works are:

• Expansion of the Chalarina pit
• Relocation and expansion of the Choloque acid water treatment plant
• Implementation of a new access (El Sauce)
• Expansion of the sterile material deposit

Of the investment, Pan American says US$289mn will go to construction, US$66.5mn to operations and maintenance and US$3.75mn to closure and post-closure phase, which would end in 2043. The company expects to receive approval in the short term and begin work, which will take between one and four years, in 2025.