Los Andes Copper receives environmental approval for drilling, allowing it to complete PFS at Chile copper project

Los Andes Copper Ltd (CVE:LA) (OTCMKTS:LSANF) (FRA:L41A) has marked a milestone for its Vizcachitas copper project in Chile, receiving the environmental approval needed to carry out drilling, which will allow it to complete the ongoing pre-feasibility study (PFS). 

The company said it had received unanimous approval from the Regional Environmental Committee for the work. 

READ: Los Andes Copper welcomes final results from pre-feasibility metallurgical testing on flagship Chile project

It means Los Andes can now sink, if needed, up to 350 holes on up to 124 platforms over the next four years.

“We are delighted with the unanimous approval received to carry out drilling at Vizcachitas. This decision is of particular significance as the drilling allows the company to complete the ongoing PFS,” said executive chairman Fernando Porcile in a statement.

“As we continue to progress on delivering a robust PFS, we look forward to sharing positive updates in the coming months.”

The deposit sits in a huge land package, spanning 308 square kilometres (sq km), of which only a small portion has so far been explored, and lies in the same geological belt as several other giant porphyry deposits.

The project is currently at PFS stage after a positive preliminary economic assessment (PEA) in 2019 showed compelling economics.

Using a copper price of US$3.50 a pound, the after-tax net present value (NPV) was pegged at US$2.7 billion, while the internal rate of return (IRR) was 26.7%. Initial capex needed was put at US$1.88 billion for a project with 3.4-year pay-back time and a mine life of 45 years.

Following this drilling go-ahead, Los Andes said the proposed work plan included infill drilling within the PFS open pit, drilling to extend the higher-grade mineralization to the north of the PEA pit, and to test the prospective geophysical targets identified in 2020.

Vizcachitas already hosts a measured and indicated resources of 11.2 billion pounds of copper, 400 million pounds of molybdenum and 43.3 million ounces of silver.

Additionally, there is ‘significant’ exploration upside with potential to increase the resource base beyond the initial 45year mine life modelled in the PEA, noted the company.

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Story by ProactiveInvestors