Bolivia
The Amayapamapa Project
The Amayapampa Gold Project is located 380 km southeast of La Paz, on the Altiplano of south eastern Bolivia, at an elevation of 4,100 metres. Mineralisation at the project is as free gold in association with pyrite, in a structural envelope of sheared quartz veins in black argillites with quartzite and siltstone interbeds. The measured and indicated resources totalling 26.2 million tonnes grading 1.23 g/t Au (at 0.60 g/t cutoff) were delineated by over 20,000m of RC and diamond core drilling and underground channels. The Company is working on the final stages of an updated Definitive Feasibility Study (“DFS”) for development of this advanced gold project.
When the Company purchased Amayapampa, it had measured, indicated and inferred Mineral Resources estimated, totalling 720,000 ounces of gold. These resource figures were estimated at a cut-off grade of 0.4 g/t Au.
A major upgrade of the total Mineral Resources at the Amayapampa Gold Project was estimated in December 2008, upgrading the Amayapampa total measured, indicated and inferred categories from 720,000 ounces to 1,084,000 ounces. This is an increase of 50%. Of these new Mineral Resources, 62% are in the high quality measured and indicated categories that are used for ore reserve mining estimations. This figure makes allowance for previous mining deductions and is at a higher cut-off grade of 0.6 g/t Au. The Company believes that these Mineral Resources still have significant potential for expansion. The Project also has significant potential for the discovery of the antimony mineral, stibnite. Amayapampa has been extensively drilled and the extensive underground workings have also been sampled.
Drilling
A drilling programme 2,241 metres drilled was undertaken in 2008. This drilling is in addition to the extensive drilling carried out by previous companies, such as 4,660 metres of diamond core drilling in 20 holes and 5,697 metres of RC drilling in 55 holes in the mid-1990s by Da Capo Resources. Vista Gold Corp drilling amounted to 4,747 metres of diamond core drilling in 26 holes and 7,575 metres of RC drilling in 41 holes. In addition there has been 5,400 metres of systematic underground channel sampling performed.
Geology
As Amayapampa is in an identical geological setting deposits as in the Company’s Hodgkinson Basin project area and in Central Victoria, the Company considers that the Altiplano region of Bolivia has strong economic potential. Post commissioning of the Amayapampa Project Republic will actively seek other projects in Bolivia to utilise its knowledge and understanding of the geology of the region.
Social Considerations
The Bolivian senior employees of Minera Nueva Vista S.A. have significantly advanced social issues with the commencement of a training programme for the villagers at Amayapampa. A total of 280 people are employed under this programme, giving many of them a guaranteed income in safe working conditions. The programme is designed to give the villagers literacy and numeracy skills and then train them for mine operations roles. The Company has also met with Bolivia’s Minister for Mining and Metallurgy, who assured the Company that Western investment in the mining sector in Bolivia was very welcome and very safe.During 2009, the Company has received considerable assistance from the Bolivian Mining Ministry, and in particular from the Vice Minister of Mines, Senor Eugenio Mendoza, culminating in Senor Mendoza’s visit to the Project in March to view progress and meet with local authorities. The Vice Minister has put in place a programme of “socialisation” for the Project, which means that he will ensure that all of the communities in the project area are fully informed about the project. This is being done in consultation with the Ministry of Government, the Prefectura’s Office of the Department of Potosi, the Chayanta Municipal Council (the local council that covers the project), the Federation of Indigenous Authorities for the North of Potosi and local government and native authorities from a number of villages and native authority areas. To show his faith in the Project, Senor Mendoza visited the Project on 20/21 March2009 and met with many community leaders and authorities. The successful conclusion of this process will result in the Company being granted its “social licence” to operate the Project.
Environment
In mid 2007 a new Environmental Permit for the mine was granted. The Company met with the Prefecto of the Department of Potosi (equal to a State Premier in Australia) and his Mining and Environmental Advisors who were all responsible for guiding this Permit through the Potosi permitting system.Work Required to Progress the Amayapampa Project
Much of the Definitive Feasibility Study has been completed previously with the following work still necessary to complete a Definitive Feasibility Study for Amayapampa, in order that financing for the Project can be sought: -- Continue the workers’ training programme
- Review the geological block model constructed by the Company
- Finalise pit optimisation and mine scheduling work
- Complete a study on the new tailings dam
- Update the operating and capital costs for the project
- Gain a sign-off on the study by an independent consulting firm
- Finalise issues with the metallurgical processing route and plant design