Silver Deposits of Peru

A survey May 2013

Silver Deposits of Peru
45,000 M oz Ag mined, 25,000 M oz in the last 100 years
Switching uses from photography to industrial uses
A few facts about silver
Increased investor demand
Poor mans gold
Never forget the price
Silver Deposits in Peru
And more recently
Silver Deposits in Peru
Cost escalation
Capex escalation
Not only price
Silver Deposits in Peru
Time specially in Peru (will not talk politics!!!)
70% of silver production occurs as by product credits
Silver is recovered from a variety of ore deposit types occurring in
unrelated tectonic settings
Describing silver deposits is a challenge
Silver Deposits in Peru
Most modern studies on ore deposits types for precious metals
focus on gold
Mine Country 2010 Production
Cannington Ag - Pb - Zn Mine Australia 38.6 Moz
Fresnillo Ag Mine Mexico 38.6 Moz
A worldwide look at large silver deposits
Silver Deposits in Peru
San Cristobal Polymetallic Mine Bolivia 19.4 Moz
Antamina Cu Zn Mine Peru 14.9 Moz
Rudna Cu Mine Poland 14.9 Moz
Peasquito Pollymetallic Mine Mexico 13.9 Moz
Project Country
Anticipated Annual
Production Capacity (due
within five years???)
Pascua Lama Chile 25.0 Moz
A worldwide look at large silver deposits
Silver Deposits in Peru
Navidad Argentina 15.0 Moz
Juanicipio Mexico 14.0 Moz
Malku Khota Bolivia 13.2 Moz
Hackett River Canada 13.1 Moz
Corani Peru 10.0 Moz
Countries
Ag Production (M oz)
2011 2012
Mexico 133 137
China 119 122
Peru 110 111
Australia 56 61
So where does Peru fit?
Silver Deposits in Peru
Australia 56 61
Russia 43 48
Bolivia 39 42
Poland 38 38
Chile 41 36
USA 36 34
Canada 17 17
Other 116 125
Total 748 771
Deposit Country
M oz Ag
contained
Grade (g/t) Type
Lubin Poland 4370 40 Lithogene
Cerro Rico Bolivia 2000 400 Low sulphidation
Fresnillo Mexico 1860 320 Low sulphidation
Peasquito Mexico 1850 26 Low sulphidation
Giant deposits around the world
Silver Deposits in Peru
Peasquito Mexico 1850 26 Low sulphidation
Cerro de Pasco Peru 1725 267 Carbonate replacement
Butte USA 1410 ? Porphyry
Pachuca Mexico 1400 500 Low sulphidation
Broken Hill Australia 1330 147 Sedex
Guanajuato Mexico 1160 800 Low sulphidation
Coeur D'Alene USA 1100 341 Lithogene
Cannington Australia 761 536 Sedex
Navidad Argentina 751 127 Low sulphidation
Zacatecas Mexico 747 900 Low sulphidation
Mt. Isa Australia 723 149 Sedex
Deposit Country
M oz Ag
contained
Grade (g/t) Type
Hilton Fisher Australia 711 97 Sedex
Brunswick Canada 672 91 VMS
San Francisco Mexico 670 150 Low sulphidation
Pitarrilla Mexico 644 79 Low sulphidation
Giant deposits around the world (cont.)
Silver Deposits in Peru
Pitarrilla Mexico 644 79 Low sulphidation
Gakun China 626 157 VMS
San Cristobal Bolivia 590 60 Low sulphidation
Antamina Peru 590 10 Skarn
Bingham Canyon USA 565 3 Porphyry
Pascua Chile 557 40 High sulphidation
Cobalt Canada 550 8,525 Lithogene
Greens Creek USA 549 709 VMS
Udokan Russia 540 14 Lithogene
Toquepala Peru 532 5 Porphyry
42 deposits account for 105 M oz Ag ( 95%) of Perus Silver
production
The top 10 producers account for 60% of silver production while the
top 20 account for 85%
So where does silver in Peru come from?
Silver Deposits in Peru
top 20 account for 85%
Mine
M Oz Ag
Produced
Production
Grade (g/t)
Type
Yauli 11.2 102
Unclassified
Veins
Antamina 10.8 10 Skarn
Uchucchacua 10.1 446
Carbonate
Hosted
Low
A look at the top 20
Mine
M Oz Ag
Produced
Production
Grade (g/t)
Type
Julcani 2.4 638
Low
Sulphidation
Caylloma 2.1 171
Low
Sulphidation
Casapalca 2 82
Unclassified
Veins
Silver Deposits in Peru
Pallancata 8.8 301
Low
Sulphidation
Arcata 6.1 312
Low
Sulphidation
Cerro de
Pasco
5.1 63
Carbonate
Hosted
Chungar 4.9 101
Unclassified
Veins
El Brocal 2.9 65
Carbonate
Hosted
Huaron 2.8 177
Unclassified
Veins
Yauliyacu 2.5 72
Unclassified
Veins
Cerro Lindo 2.4 68 VMS
Atacocha 2 85
Carbonate
Hosted
Cuajone 1.9 2 Porphyry
Morococha 1.9 128
Carbonate
Hosted
Toquepala 1.7 2 Porphyry
Aruntani 1.6 10
High
Sulphidation
Yaruricocha 1.6 158
Carbonate
Hosted
Type of Deposit
2012 Production
(M oz Ag)
Typical grades
(g/t)
% Value from Ag
VMS 22 30 - 70 5 -10
Unclassified Veins 38 80 - 180 20 - 50
Another look at producers
Silver Deposits in Peru
Porphyries 5 1.5 - 2.5 2 - 5
Low sulphidation
veins
24 100 - 600 60 - 90
IOCG 1 10 2 - 5
High Sulphidation 5 20 - 40 5 - 20
Carbonate Hosted 4 60 - 400 10 - 40
Skarns 14 6 5 -8
Property Name
Grade
(g/t)
M oz Ag
Contained
Antamina Copper/Zinc Mine
9.8 586.40
Toquepala Copper/Molybdenum
Mine 4.9 532.15
Toromocho Copper Deposit
7.0 478.74
Looking into resources
Property Name
Grade
(g/t)
M oz Ag
Contained
Iscaycruz Zinc/Lead Mine
185.1 134.17
Huaron Silver/Base Metal Mine
166.4 116.75
Cerro Verde
Copper/Molybdenum Mine 0.8 115.34
Silver Deposits in Peru
Corani Silver/Lead/Zinc Project
37.2 406.70
Cuajone Copper/Molybdenum
Mine 5.0 378.51
Cerro de Pasco Mine
96.0 231.90
Las Bambas
Copper/Molybdenum/Gold Mine 3.0 166.96
Santa Ana Silver Project
41.4 164.25
Los Quenuales Zinc/Lead
Operation 118.2 146.68
Tambo Grande
Copper/Zinc/Gold Project 28.7 135.60
El Brocal Copper/Zinc/Silver
Operation 20.2 108.99
Tantahuatay Gold/Silver Project
6.4 106.30
Sinchao
10.2 96.25
Arcata Silver/Gold Mine
406.5 92.78
Constancia
Copper/Gold/Molybdenum Mine 2.5 92.68
Berenguela Silver/Copper
Project 126.4 87.75
Pallancata Silver/Gold Mine
345.8 87.13
There are about 90 silver containing assets in Peru of which roughly
50% are in production
The total endowment is the order of 6,000 M oz Ag and roughly 65%
is in the top 20 projects and mines
So
Silver Deposits in Peru
is in the top 20 projects and mines
Property Name
Grade
(g/t)
M oz
Ag
Cont.
Deposit type
Julcani Silver Mine
643.4 13.90
Epithermal
Uchucchacua Silver/Base
Metal Operation 411.9 66.50
Carbonate
replacement
Arcata Silver/Gold Mine
406.5 92.78
Epithermal
Looking at grades
Property Name
Grade
(g/t)
M oz
Ag
Cont.
Deposit type
Iscaycruz Zinc/Lead Mine 185.1 134.17
Carbonate
replacement
Pachapaqui
Zinc/Lead/Silver Mine 184.5 43.29
Carbonate
replacement
Azuca Gold/Silver Project 179.1 80.57 Epithermal
Silver Deposits in Peru
Arcata Silver/Gold Mine
406.5 92.78
Epithermal
Pucarrajo Zinc Mine
402.7 18.39
Carbonate
replacement
Pallancata Silver/Gold
Mine 345.8 87.13
Epithermal
Shila-Paula Gold/Silver
Project 290.0 10.72
Epithermal
Santa Rita
Silver/Lead/Zinc Project 230.0 24.72
Carbonate
replacement
Coricancha Gold Mine
216.8 40.23
Veins unclassified
Yauli
200.0 67.80
Carbonate
replacement
Morococha Silver/Base
Metal Mine 194.8 81.66
Carbonate
replacement
Azuca Gold/Silver Project 179.1 80.57 Epithermal
Urumalqui Silver/Gold
Project 171.0 10.69 Epithermal
Orcopampa Gold/Silver
Project 167.0 10.17 Epithermal
Huaron Silver/Base Metal
Mine 166.4 116.75 Veins unclassified
Inmaculada Gold/Silver
Project 147.4 56.91 Epithermal
Alpamarca 137.0 17.60
Carbonate
replacement
Berenguela Silver/Copper
Project 126.4 87.75 Epithermal
Quiruvilca Silver/Base
Metal Mine 120.5 10.95 Epithermal
Most of the silver endowment is in Carbonate replacement deposits,
porphyries, skarns
However, epithermal veins are the main source of primary silver
production and endowment
In conclusion so far
Silver Deposits in Peru
production and endowment
Better grades occur in epithermal and carbonate replacement
bodies
I have not looked at grades over time but its clear that grades are
lower than a decade ago
Mining operations & silver projects in Peru
Silver Deposits in Peru
Silver mining operations
Silver Deposits in Peru
Peru is a leading silver
producer
40% of the production comes
from primary silver mines
60% of the production is by
product from base metal
mines
Silver projects
Silver Deposits in Peru
1500 M oz known silver
resources in new projects
Silver Deposits in Peru
Perus silver occurrences are associated with the following deposit
types:
Carbonate replacement deposits and skarns
Low sulfidation epithermal vein deposits
High sulfidation epithermal deposits
Final comments
High sulfidation epithermal deposits
Porphyry copper deposits
Associated with tertiary vulcanism and intrusions in carbonate
country rocks