The former Compania Minera Milpo operations in Peru, now known as Nexa Resouces Peru, have reported some interesting developments in its Q3 2018 results with regard to waste treatment and tailings disposal plans. At the Atacocha underground Zn-Pb-Cu mine, the construction of the first phase of a new waste disposal facility to allow the continuity of San Gerardo’s open pit mine was concluded in Q3, with a total capex of $6.6 million. The second phase is under feasibility study (FEL3) and is over 90% complete. Construction of the second phase is expected to be approved in Q1 2019 and completed by Q2 2020, due to modifications in the mining plan and license requirements.
During Q3 2018, an increase in treated ore was registered in the Cerro Lindo Zn-Pb-Cu-Ag underground mine with regard to Q2 2018, however, during Q3, development works continued to be carried out in Cerro Lindo with the aim of restoring the levels obtained in previous quarters. In Cerro Lindo, during Q3, the contractor selection process for the construction of the new waste disposal deposit (Pahuaypite) was concluded. The current ongoing activities include building the main access to the future location for a waste dump wall and drainage system. Also, regarding the replacement of the seawater pipeline from the desalination plant, contractor selection was concluded, and the acquired pipeline delivery is expected during 4Q18.
Additionally, drilling activities started in the Orcocobre region, north of the Topara River. There are currently four drilling machines in place, and the plan is to diamond drill approximately 18 km by the end of 2019.
In the Pasco Mining Complex, the operational integration process between the mines of Atacocha and El Porvenir continued. In line with the schedule, the construction of the underground tunnel in the level 3600 was the last concluded phase, and current ongoing activities include development works inside the Atacocha mine, as well as the adequate preparation of the Picasso shaft.
Moreover, during Q3 2018, the project for the elevation of El Porvenir tailings dam to level 4060 was approved, with an initial capex of $17.2 million. The Environmental Impact Assessment (EIA) has already been obtained.
Finally, regarding drilling and explorations activities in all Mining Units, over 33 km of diamond drilling were carried out during Q3 2018, focusing on the identification of new orebodies at all mining units in order to guarantee the long-term sustainability of the business through the increase in mineral resources.