Our Projects

BOLIVIA

The Amayapamapa Project

A BANKABLE FEASIBLITY STUDY was completed on the Amayapampa Gold Project (the “Project”) on 5th August 2010.  The Project is located 380 km southeast of La Paz, on the Altiplano of south western 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 total 26.8 million tonnes grading 1.1 g/t Au (at 0.4 g/t cutoff) resulting in a total of 979,000 ounces representing an increase of 48% from 2007 resources. These gold resources were delineated by over 20,000m of RC and diamond core drilling, surface trench, shaft and underground channels.

 

Key BFS Outputs

•   Amayapampa BFS successfully completed – an estimated ore reserve of 19,900,000 tonnes at 1.3 Au g/t for 817,000 contained   ounces is the impetus for planned acceleration of near-mine exploration programme to extend resource base.
•   Preliminary Project pre-tax NPV at US$925 per ounce is US$166M, and at US$1,200 per ounce is US$340M.
•   Capital required to commence production is US$136M.
•   Conservative gold price assumption used of US$925 per ounce.
•   683,700 ounces to be produced over 7 years.
•   Expected average annual production of 93,700 ounces from 2,737,500 tonnes per annumtreatment plant.
•   High measured & indicated resource to ore reserve conversion of 83.5%.
•   Strong cash operating margin and very robust project.
•   Cash operating costs of US$13.19 per tonne treated, or US$384 per ounce.
•   Significant upside on operating margin -average metallurgical recoveries of 83.8%.
•   Low cost open pit mining scenario, with low stripping ratio of 3.0 to 1.0 achieved using conservative pit design parameters.
•   All critical permits and licensing secured including Amayapampa Social License.
•   The Company to continue optimising various BFS elements prior to project go-ahead.

A major upgrade of the total Mineral Resources at the Amayapampa Gold Project was estimated in February 2010, upgrading the Amayapampa total measured, indicated and inferred categories from 1,084,000 ounces to 1,279,000 ounces. This was an increase of 19.4%. Of these new Mineral Resources, 77% are in the high quality measured and indicated categories that are used for ore reserve mining estimations above. This figure makes allowance for previous mining deductions and is at a cut-off grade of 0.4 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 narrow historic underground workings have also been sampled.

The new geological block model has reinforced the Company’s confidence in some very deep and high grade analysis results.  Previously these had been eliminated from the mineral resource estimate.  The inclusion of these results offers the potential to lead to a deeper open pit scenario or an underground mine.  The new geological block model has improved the confidence levels of mineralisation along various margins of the model, meaning that these zones can now be taken into account in ore reserve calculations.  

Drilling


A drilling programme of 2,241 metres 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. During 2009, the addition of new data to the database comprises 1,229 diamond core samples, 1,224 surface trench samples and 1,114 surface shaft samples

Geology


As Amayapampa is in an identical geological setting as the deposits of the Company’s Hodgkinson Basin project area and in Central Victoria, the Company considers that the Altiplano region of Bolivia has strong economic future.  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 was completed 19th July 2010 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 has resulted in the Company being granted its “social licence” to operate the Project.

In early 2010, the Morales Government appointed Senor Jose Pimentel as Minister for Mining and Metallurgy.  Minister Pimentel was a Congressman in the previous Morales Government representing the city of Llallagua and surrounds, a very short distance from the Project.  The Company is looking forward to working with Minister Pimentel on the development of Amayapampa and in bringing significant economic and social benefits to the region of the North of Potosi, in which Amayapampa and Llallagua are located.

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.  On 1 April 2010 the Project began operating under this Environmental licence.