Quiruvilca Mine, Peru (99.9%)
Pan American has operated the Quiruvilca polymettalic underground mine in Peru since late 1995. The mine is located at an elevation of 3,800 meters in the Andes Mountains of northern Peru, approximately 130 kilometers inland from the coastal city of Trujillo. The underground workings at Quiruvilca cover an area four kilometers long by three kilometers wide and extend to more than 400 meters in depth.
History: Quiruvilca is one of Peru's oldest mines with mineralization first reported in the area in 1789. Since 1940, the mine has been in continuous operation. Initially, mining focused on the copper bearing veins on the property but, gradually, focus was shifted to veins in the zinc-lead zone. In March 1967, the mill started to treat complex ores producing copper, lead and zinc concentrates.
In August 1995, Pan American acquired 80% of the outstanding voting shares in Mina Quiruvilca and, between September 1995 and March 1996, it increased its interest in the mine to 100% of the outstanding voting shares and 99.7% of the total outstanding equity.
Operating Statistics:
|
2007 |
2006 |
2005 |
Tonnes Milled |
362,141 |
370,115 |
362,192 |
Silver ounces |
1,569,000 |
2,105,475 |
2,234,565 |
Zinc tonnes |
7,234 |
8,712 |
9,697 |
Lead tonnes |
2,528 |
2,574 |
2,761 |
Copper tonnes |
1,805 |
1,345 |
1,307 |
Gold ounces |
1,566 |
1,106 |
1,289 |
Cash cost per ounce |
$2.43 |
$ (0.04) |
$ 4.07 |
Mineral Reserves:
|
Tonnes |
Silver Grade
(g/tonne)
|
Contained Silver
(ounces)
|
Proven |
730,000 |
175 |
4,106,000 |
Probable |
702,000 |
149 |
3,366,000 |
Total |
1,432,000 |
162 |
7,472,000 |
Calculated as at December 31, 2007 using the silver price of US$11.00 /ounce.
Mineral reserve estimates for Quiruvilca were prepared under the supervision of, or were reviewed by Michael Steinmann, P.Geo., Sr. VP Geology & Exploration, and Martin G. Wafforn, P.Eng., VP Mine Engineering, as Qualified Persons as the term is defined in NI 43-101.
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