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INFORME ANDREA
INFORME ANDREA
Jorge Artal
Luis Valencia
Noviembre 2018
IMPORTANT NOTE This report was prepared exclusively for Baobab
Physical Commodities LLC, by Geoearth SpA. The quality of the
information, conclusions and estimates included here are
consistent with the level of effort involved in the services and based
on: i) information available in the moment of its preparation, ii)
data delivered by external sources, and iii) data assumed,
conditions and qualifications included in this report. The purpose
of this report is to be used only by Baobab Physical Commodities
LLC and is subject to the terms and conditions of your contract with
Geoearth SpA. Any other use of this report by third parties will be
at your own risk.
Contets
1. INTRODUCTION
1.1. Introduction------------------------------------------------------------------------------------------------------1
1.2. Location and access---------------------------------------------------------------------------------------------1
1.3. Scope---------------------------------------------------------------------------------------------------------------2
2. DISTRICT GEOLOGY---------------------------------------------------------------------------------------------------2
3. MINING GEOLOGY----------------------------------------------------------------------------------------------------2
4. MINING ENGINEERING----------------------------------------------------------------------------------------------5
5. CONCLUTIONS---------------------------------------------------------------------------------------------------------9
6. RECOMMENDATIONS -----------------------------------------------------------------------------------------------9
1. INTRODUCTION
1.1. Introductión
Jorge Artal ( MAusIMM 230563), through Geoearth SpA was hired by the
company Baobab Physical Commodities LLC with the purpose of
making a technical visit to the Andrea mines, to study the geological
potential they have and, how much mineral can be extracted monthly
in the time.
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1.3. Scope
The scope of the work is to determine, in both mines, the type of mineral
deposit, the geological potential and what production can be obtained
monthly and for how long. In addition, a program will be delivered with those
activities that must be carried out in order to fulfill the production over time.}
2. DISTRICT GEOLOGY
Most of these deposits occur in volcanic rocks such as: lavas or breaches of
andesite, basalt, rhyolite, dacite and trachyte.
The Andrea deposit are located in the Pitipeumo Member (Espinoza 1969),
of the Las Chilcas Formation, which was assigned to the Upper Cretaceous
by Thomas (1958) Carter y Aliste (1962) and the Lower Cretaceous by Rivano
et al. (1986). The member Pitipeumo, is composed of a sedimentary
sequence concordant mainly volcanoclastica, that from base to bed is
constituted by; red sandstones, lapilli tuffs, black shales (partly also
limestones and carbonaceous marls), green sandstones and breccias.
3. MINES GEOLOGYIn the sector of the mining projects, three bodies are
recognized (Andrea, Bigote and Catherine), which mineralization reaches
from 3 to 4 meters of maximum thickness, 200 meters in a recognized vertical
development and observed length of approximately 500 meters ,
conforming. tabular bodies, vein type.
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Minerals of the ore in the upper part are recognized oxides, atacamite type,
crisocola and chalcantite with grade arround 1,o to 2,0 % CuT. Fig2.
In the lower levels, the minerals of the ore are abundant, the sulfides are
disseminated in the matrix of the breach, being present chalcocite,
chalcopyrite, bornite, pyrite and, also accompanying sulfides, gold ore, with
grade arround 0,8 to 1,5% CuI,and probability .0,5gr/Ton Au and 20gr/Ton
Ag.
The alteration does not differ from that presented by the Las Chilcas
Formation outside the deposit and includes chlorite, calcite, prehnite and
pumpellita; and locally there is silicification.
The structural set is arranged according to a N30 - 35 W /40 °E direction
where mineralized structures are found. Fig 3.
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Figure 3. Faul N30W/45E with mineralization
The formative processes of this deposit are related to pre and post mineral
faults. The result is that the mineralized body is limited by faults that run
parallel to the course of the reservoir's main axis. The processes of present
structural discontinuities are large fragments of block size, which affect
anisotropic behavior of the breccia.
In the satellite image (Fig4) it can be seen that these mineralized bodies
extend approximately 2000m, however it could not be determined, with the
existing information, if one or all three mineralized bodies have this continuity.
For this reason, to calculate the profitability of the business, it is advisable to
use only one body and with an extension of 500m
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Figure 4. Satellite image of Andrea mine.
4. MINING ENGINEERING
The block analyzed in this case has an average width of 3.0 m, a height of
200 m and a length of 350 m. It should be noted that the visit focused on the
sectors with tillage.
If we consider the geometry of a structure with the following characteristics,
we obtain the following:
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Deposit Underground
Length 350 m
Width 3 m
High 200 m
Mining
Recovery 75%
Volume 157.500 m3
Tonnes 405.000 ton
Oz pay 94%
Price Au 2,8 USD/lb
Income 16.920.264 USD
Exploitation of Mines
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During the process of development of the caving, only the fluff produced
by each lift is extracted, once all the remaining broken material is
extracted, once it has reached the upper level. All this will depend on the
way the operator intends to operate, there are already numerous ways to
extract this material.
The unit operations will be through a service contract, which will provide
labor, drilling equipment (hand equipment), loading and transport
(recommended LHD equipment of 2 and d3) to extract the ore and the
sterile surface. In addition, it must provide water and compressed air
services.
The cost of the estimated underground operation will be USD 35 / t.
Production plan
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Mine Vein Q_01 Q_02 S_01 Y_02 Y_03 Total
Underground 1 9.000 12.000 24.000 60.000 60.000 165.000
2 34.500 43.500 78.000
Total 9.000 12.000 24.000 94.500 103.500 243.000
Cash flow
Considerations:
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5. CONCLUTION
Taking into consideration the background obtained during the visit to the
mine, it can be concluded that the area has an economic interest.
Interesting, since there are three mineralized bodies that could have a
continuity in the horizontal of approximately 2000m and 500m in the vertical
probably which could give a resource of approximately 5.200.000 Ton
With the information obtained to date, this deposit, which is being exploited,
has no proven reserves and is only working with inferred resources and a
minimum of indicated resources that are those that are on the extraction
front.
The extraction work is well designed and meets the safety standards.
Andrea delivers interesting values in the cash flow and therefore it is
profitable to exploit it, even more so when one can consider the mining
exploitation of Manuela and Rosita that are mines that can provide gold,
copper and probably cobalt to the production.
Neither of the two sectors have indicated or measured resources, less can
we speak of reserves
6. RECOMMENDATIONS
Although ore is being mined in the mine, there are no reserves that will
ensure a constant production over time. That is why it is recommended to
carry out a detailed mapping of the surface and in the underground works
that indicate the continuity, distribution and magnitude of these
mineralized bodies.
Once the mapping was done, it is recommended to design a drilling
campaign that will allow for measured resources, which should be used to
develop a suitable mining plan for this type of mineralization.
It is recommended to do business with the owners, since there is an
interesting potential, but it would be necessary to inject resources to ensure
the production in time.
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