Gelonghui, December 3 | Zijin Mining (02899.HK) announced that the company acquired Pan American SilverCorp through its wholly-owned overseas subsidiary Jinyu (Singapore) Mining Co., Ltd. (hereinafter referred to as “Jinshi Mining”). (“Pan American Silver”) owns 100% interest in the La Arena gold mine in Peru and the Phase II project (hereinafter collectively referred to as the “La Arena Project”).
Since all delivery prerequisites agreed in the share acquisition agreement have been fulfilled or exempted, the transaction was completed on December 3, 2024, Beijing time. The company now holds 100% interest in the LaArena project through Jinshi Mining.
As of June 30, 2024, the LaArena gold mine has a total confirmed + credible grade ore reserves of 22.6 million tons, containing about 8 tons of gold, with an average grade of 0.33 g/ton. According to the February 2018 technical report that complies with NI43-101 standards, LaArena Phase II (prove+control+inference) has an ore volume of 0.834 billion tons, containing 196.5 tons of gold, with an average grade of 0.24 g/ton; 2.785 million tons of copper, with an average grade of 0.33%.
The LaArena gold mine is currently in production, with an annual output of about 3 tons of gold, and the remaining service life is 3 years. LaArena Phase II will develop porphyrous copper-gold deposits in northeastern China. According to preliminary evidence from the company's technical team, the second phase plans to use open pit mining and flotation processes. If designed at a scale of 33 million tons/year, the construction period is 3 years, and the production period is 19 years. It is expected to produce about 0.1 million tons of copper and 3.8 tons per year after delivery.
The company believes that the LaArena project is located on a world-famous metalforming belt, and as a production mine, the copper and gold grade are low but the amount of resources is large, and there is good potential for prospecting and storage; the mining area infrastructure is relatively complete, the mine service period is long, local transportation and electricity supply conditions are good, and the economic benefits are expected to be remarkable.