Antofagasta to invest $200M in Cachorro copper project
Chilean miner Antofagasta (LSE: ANTO) has earmarked $200 million over seven years for a new exploration stage at its Cachorro copper project in the country’s north.
The move follows the submission in January of an Environmental Impact Statement for the project, which sits between the company’s Centinela and Antucoya operations. This proximity could create synergies with existing infrastructure and processing facilities, the largest pure-play copper miner listed in London said by email.
If regulators approve the environmental statement, Antofagasta plans to move ahead with surface and underground exploration to better define the deposit. The work is to include more than 700 drill holes, infill drilling to improve geological modelling, and construction of a horizontal tunnel reaching 300 metres deep.
Shares in Antofagasta gained 2.6% in London to £15.09 apiece on Monday afternoon for a market capitalization of £14.8 billion. They’ve traded in a 52-week range of £12.78 to £24.25.
Baseline studies
As part of the environmental assessment process, Antofagasta is to conduct baseline studies to protect nearby ecosystems, monitor groundwater, carry out archaeological surveys and promote local employment and procurement.
Cachorro is located in the western Atacama Desert at an elevation of 1,500 metres, 100 km northeast of the city of Antofagasta. It is also situated 1,100 km north of the capital, Santiago. Since exploration began in 2017, Antofagasta has outlined a mineral resource of 255 million tonnes grading 1.26% copper, with silver as a by-product at 4 grams per tonne.
S&P Global Market Intelligence lists Cachorro as one of the largest greenfield copper discoveries of the past decade and one of the most significant manto-type deposits in Chile’s coastal belt.
