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Coastal Pacific Provides Overview of the Prolific Mining History in Peru
CALGARY, AB -- 10/26/10. Source:
Coastal Pacific Mining Corporation
Coastal Pacific Mining Corp. (OTCBB: CPMCF) ("Coastal Pacific" or the "Company"), further to today's announcement of a letter of intent in regards to the Santa Rita Property, situated in the District of Acobambilla, Province of Huancavelica, Department of Huancavelica, in the Republic of Peru, the Company is providing additional details on the significant mining history and current mining activities in the region.
Mining has been a central element in Peru's history for thousands of years. The Andes are rich in minerals, and gold and silver pieces can be found in numerous pre-Columbian societies. Mineral exports are a key to the country's economy, representing nearly half of Peru's exports in 2000. Peru ranks eighth worldwide in gold production (first in Latin America), second in copper, and among the top 5 in lead and zinc.
Two of Peru's gold mines, Yanacocha and Pierina, are among the most productive and profitable gold mines in the world. Located high in the Andes Mountains of Peru, Yanacocha is the largest gold producer in Latin America. With three active open pits, since the mine opened in 1993 production has exceeded 26 million ounces which at today's prices equates to over US $33 billion. The Pierina mine is located in the Andean Cordillera in the Department of Ancash in north-central Peru, approximately 10 kilometres northwest of the city of Huaraz, at an altitude of approximately 4,100 metres. Pierina is an open-pit, truck-and-loader operation. In 2009 Pierina produced 271,000 ounces of gold which would be currently valued at just over US $350 million.
Peru has an estimated 21 million fine ounces of gold reserves in mines currently under operation and 42 million fine metric tons of copper reserves.
The massive Antamina mine project is a large copper and zinc mine, located in the Andes mountain range, 270 kilometres north of Lima, Peru. The deposit is located at an average elevation of 4,200 metres. Total reserves at Antamina are 745 million tonnes, based on a reserves study done in 2008. Teck holds a 22.5% interest in the mine, BHP Billiton 33.75%, Xstrata plc 33.75%, and Mitsubishi Corporation 10%.
The mine is an open pit, truck/shovel operation. The ore is crushed at the rim of the pit and conveyed through a 2.7 kilometre tunnel to a coarse ore stockpile at the mill. It is then processed utilizing a SAG mill, followed by ball mill grinding and flotation to produce separate copper, zinc, molybdenum and lead/bismuth concentrates. A 302 kilometre-long slurry concentrate pipeline transports copper and zinc concentrates to the port for shipment to smelters and refineries world-wide.
Mining activity and exports have grown exponentially since 1991, when the government adopted a series of new rules and tax benefits for large-scale mining, streamlined the process for filing a mineral claim, and allowed companies to re-invest upward to 80 percent of profits tax free. Mining exports grew from US$1.2 billion in 1987 to US$2.7 billion in 1997.
As of 2009, Peru's mining exports comprises 60 percent of Peru's total exports at $15.9 billion. It is anticipated that Peru's exports will rise 10% in 2010 due to the growing demand for commodities.
Mr. Bucci, President of Coastal, says, "The favorable mining environment,
substantial current and historical
Peruvian mining activity, and
significant investor interest in
properties in the region, all lead us to
believe the Santa Rita property would be
a valuable economic addition to our
portfolio."
About Coastal Pacific
Coastal Pacific activities are to
explore, develop and mine gold and
silver resources in North and South
America. As its primary focus, Coastal
Pacific will joint venture with
companies having reserves to develop and
produce. Currently the Company is in a
joint venture agreement in Ontario,
Canada.
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