Posted in | News | Gold | Copper | Mining Business

Tamidak Gets All Permits to Initiate Tailings Pond Reprocessing at Pimentón Copper and Gold Project

Cerro Grande Mining Corporation (the “Company” or “CEG”) is pleased to announce that Minera Tamidak Limitada (“Tamidak”) has received all of the applicable environmental and mining permits to initiate the tailings pond reprocessing operation at the Company’s past producing Pimentón copper and gold project located approximately 120 km northeast of Santiago in the Andes mountains in Chile (the “Pimentón Project”). Site preparation has been on going since October 2022, and it is anticipated that the first concentrates from the tailings pond should be produced in late March.

As previously announced by the Company on March 6, 2022, the Company’s wholly-owned Chilean subsidiary, Minera Til Til SpA (“Til Til”) is leasing to Tamidak certain concessions from the Pimentón Project pursuant to a “Contrato de Arrendamiento de Concesiones Mineras de Explotacion” (Lease Agreement for Mining Exploitation Concessions) (the “Agreement”) enabling Tamidak to carry out certain exploration and extraction activities for mineral substances limited to the existing tailings pond at the Pimentón Project.

Pursuant to the Agreement, all activities to be conducted by Tamidak, including obtaining the required permits and authorizations applicable to Tamidak’s activities, are its sole responsibility and costs. As compensation for the lease, Til Til is entitled to receive, on an annual basis, 50% of the net profits that Tamidak may receive from the recovery and sale of minerals recovered from the tailings pond.

The National Geology and Mining Service of Chile (SERNAGEOMIN) visited the site on November 29, 2022 and approved the lifting of the temporary mine closure.   The reprocessing equipment has previously been tested and is now substantially installed on site and a workforce has been retained for the operation of the reprocessing plant. It is anticipated that the reprocessing operation will begin on or about March 20, 2023.

As set out in section 13.3 of the Company’s NI 43-101 Technical Report dated April 19, 2022 entitled “An Updated Technical Report on the Pimenton Mine and its Tailings Pond Gold Potential Region 5, Chile for Minera Til Til SpA, a Wholly Owned Subsidiary of Cerro Grande Mining Corporation” (the “Technical Report”), it is estimated that approximately 350,000 cubic meters of material accumulated throughout active mining operations from 1995 until 2017. The historical data for density defined for Compania Minera Pimenton, the Company’s former wholly owned subsidiary is equal to 1.6 t/m3 indicating that the reservoir has approximately 560,000 tonnes of material which falls into an indicated mineral resource of 20,165 oz of gold(Au), assuming a head grade of 1.12 g/t Au. The current permits allow for a maximum processing of 5000 tonnes per month at the tailings pond. Further information is available in the Technical Report, a copy of which is available on SEDAR under the Company’s profile.

The scientific and technical content of this news release has been reviewed and approved by Román E. Flores Villalobos, who is independent of the Company, and a qualified person as defined by National Instrument 43-101. Mr. Flores prepared the Technical Report on behalf of the Company.


Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type