Canada-based precious metals miner Element79 Gold (CSE:ELEM) is reviewing near-term producing assets in Peru and South America following delays in reaching an agreement for its Minas Lucero Gold and Silver Project in Peru.
The company attended the 12 April Spring General Assembly Meeting to discuss upcoming exploration, mill and tailings reprocessing plant development plans.
For Element79 to be able to proceed with these activities, it required the completion of long-term surface agreements and formalisation of the existing Integral Mining Formalisation Registry (REINFO) small-scale mining permits with the company’s mineral leases.
These surface rights access contracts for the company and all other mining groups working in the Chachas region are negotiated and signed with the Chachas community.
At the Spring General Assembly Meeting, Element79 reiterated its message and dialogue around collaborative work plans and win-win solutions with the community.
The explorer says the message was generally well received and in instances where there were enquiries and debates around Element79’s involvement, the company was supported by the greater community and its leaders.
However, Element79 adds that there was some dissension against the company and its plans from a “radical faction” of the local artisanal miner’s group, Lomas Doradas, where emphatic conversations were drawn out for hours both during and after the General Assembly.
This meant that no formal agreement was able to be reached for either Element79 or Lomas Doradas.
Element79 still believes in the exploration and production potential of the Lucero project and is continuing to strengthen community relations and work to secure an agreement.
The Chachas community leaders and local community administration board, Junta Administrativa Local, have agreed to meet again next week.
“Element79 Gold Corp remains dedicated to transparent dialogue, responsible community and resource development, and long-term profitable and mutually beneficial community partnerships,” the company says.
The 15-month delay has prompted Element79 to review its Lucero and adjacent projects to evaluate the best way to move the project forward and maximise shareholder value.
At the same time, Element79 is reviewing additional growth opportunities and says it will provide further guidance on these in due course.
Element79 is a mining company focused on exploring and developing its past-producing Lucero project in the Arequipa region of Peru.
Formerly operated as the Shila mine from 1989 to 2005, Lucero spans 10,805 hectares in the Chila mountain range of Southern Peru.
The area contains several historic “high-grade” gold-silver mines that were operated from the late 1980s to 2005 with small-scale artisanal mining ongoing since 2005.
Between 1998 and 2005, Lucero reported annual production averaging about 20,000 ounces of gold and 435,000 ounces of silver at grades of 14.7 grams per tonne gold and 450g/t silver.
Recoveries from the ore processing facility during this time averaged 94.5% for gold and 85.5% for silver.
Write to Angela East at Mining.com.au
Images: Element79 Gold
