Aruntani expects Arasi to boost output to 250,000oz in 2006 - Peru
Published: Friday, May 5, 2006 12:17 (GMT -0400)
Peruvian mid-sized gold miner Aruntani aims to boost production by 25% to 250,000oz in 2006 with the coming on stream of its new Arasi project in southern Peru, company president and owner Guido del Castillo told BNamericas.
The company is seeking permits for Arasi, formerly Rescatada, and expects the operation to produce 50,000oz in 2006 and 100,000oz/y next year, said del Castillo.
Del Gastillo said investment of US$15mn would be required to build an open pit, heap leach operation at Arasi.
Aruntani bought the project in 2005 from South Africa's AngloGold Ashanti (NYSE: AU) for US$12.5mn. AngloGold outlined some 500,000oz of oxide gold resources at Arasi during exploration from 2000.
In 2005, Aruntani produced roughly 200,000oz of the yellow metal from its Tukari and Santa Rosa open pit mines in southern Peru's Puno department, also the home of Arasi.
This year, Tukari is forecast to produce some 160,000oz of gold and Santa Rosa 40,000oz, according to del Castillo.
Resources at Santa Rosa are declining with perhaps one more year of production left, while Tukari has sufficient resources to support a further eight years, he said.
Privately-owned Aruntani surprised the local mining world when it brought Santa Rosa on stream in 2002 and Tukari in 2003 for total investment of some US$25mn, the first high-sulfidation gold deposits in southern Peru.
Since then the area has become a focus of attention for both local and international explorers.
Del Castillo said the use of local technicians helped keep capital costs low although international mining consultant Vector is supervising the construction of Arasi.
"The costs are very low because we don't work with large 100t trucks but 30t trucks, it requires more personnel but the costs are much less," he said.
Operating costs are around US$250/oz he said.
JV PEÑOLES
Aruntani is in the process of signing a five-year exploration JV in the north of Puno department with Mexico's Industrias Peñoles (BMV: PE&OLES), said Del Castillo.
The focus of attention is the Capac Orco target where drilling by Peñoles has suggested resources of 2Moz, according to the Aruntani chief.
By Emily Russell
BNamericas.com
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