The Future Copper Endowment in Peru

THE FUTURE COPPER ENDOWMENT IN PERU

Jorge ACOSTA ALE 1

Alberto BUSTAMANTE 2 & Miguel CARDOZO(2, 3)

1 Recursos Minerales y Energéticos – INGEMMET 2 EXPLOANDES3 ALTURAS MINERALS

[email protected]

Content

• Statistical facts

• Peruvian copper belts

• Deposit types and metal contents in the main porphyry belts

• Geological models of the main porphyry belts in Peru

• Facts and challenges

Statistical Facts

0.50.7

0.9

1.3

2.7

5.15.4

0.050.21 0.28

0.350.44

0.98

1.26

1.01.2

1.61.2

1.8

1.2 1.1

3.1

5.0

7.4

8.4

10.4

14.6

16.5

0

2

4

6

8

10

12

14

16

18

0

1

2

3

4

5

6

7

8

9

1950s 1960s 1970s 1980s 1990s 2000s 2010-2012

Me

tric

To

ns

of

Fin

e

Co

pp

er

(Mil

lio

ns

)

Average for each decade

Australia

Canada

Chile

China

Peru

United States

Others

World production

Worldwide Copper Production Trends(average for each 10 years)

Source: Copper in Peru: J. ACOSTA, A. BUSTAMANTE & m. CARDOZO. 31° PERUMIN 2013

Peru and Chile Copper Production to 2021(actual + forecast)

0

2

4

6

8

10

12

14

16

18

Met

ric

Ton

s o

f Fi

ne

Co

pp

er

(Mill

ion

s)

World Peru Chile


Copper Mines in Peru - 2013

1-10

10-50

50-200

200-500

Annual ProductionMetric Tons of Copper

X 1000

Mines

Iscaycruz

Cerro Corona

Yauricocha

Contonga

Antamina

Cobriza

Cerro Verde

Toquepala

Cerro Lindo

Raul-Condestable

Cuajone

Antapacay

461

261

172151

136

37 31 27 20 184 4 4 3

0

50

100

150

200

250

300

350

400

450

500

Met

ric

ton

s o

f co

pp

er

x 1

00

0

Huarón

Colquijirca1.4 Mt

Future Copper Producers in Peru

500

350

315

275

225200 190 187

160

120 119 110 107 10380 80

60 5431

0

100

200

300

400

500

600

Pla

nn

ed

Pro

du

ctio

nM

etri

cTo

ns

of

Fin

e C

op

pe

rX

10

00

Cañariaco (2019)La Granja (2017)

El Galeno (2016)Michiquillay (2019)

Magistral (2016)

Minas Conga (2017)

Río Blanco (2019)

Toromocho (2014)

Los Chancas (2017)Las Bambas (2014)

Haquira (2019)

Mina Justa (2015)

Los Calatos (2018)Zafranal (2019)

Tía María (2015)

Constancia (2015)Quechua (2014)

1-10

10-50

50-200

200-500

Planned Annual ProductionMetric Tons of Copper

X 1000Projects

Quellaveco(2016)


Copper Exploration Projects

TrapicheAntilla

AntabambaCoroccohuayco

Ataspaca

La Mancha

El Chorro

Los LatinosRondoni

El Tambo

Pashpap

La Arena

PuquioLara

Katanga

Aguas Verdes

Angostura

Pukaqaqa

ColpayocCascabamba

Potrobayo

Papayo

Tambogrande

Pachagón

Pucacorral

Alpamarca

Aucapampa

Adriana

El ToroAlto Dorado

Utupara

Pampa Colorada

Sombrero

La Arena

Trapiche

Tambogrande

Cotabambas

Coroccohuayco

Pukaqaqa Antilla

Pashpap Katanga Rondoni

Aguas Verdes Ataspaca Lara

Cascabamba Colpayoc El Chorro El Tambo

Adriana La Mancha Los Latinos Pachagón

Puquio Utupara Pucacorral Potrobayo Papayo

Alto Dorado Alpamarca Sombrero Aucapampa

Angostura Antabamba Pampa Colorada

Projects withresources < 1 MMT

ProspectsProjects withresources > 1 MMT


Copper Mines and Projects in Peru

La Granja

El GalenoMinas Conga

Río Blanco

Toromocho

Los ChancasLas Bambas

QuechuaMina Justa

Quellaveco

Tía María

Antamina

Cerro VerdeToquepala

Cuajone

Tintaya

Zafranal

Projects

1-10

10-50

50-200

200-500

Actual and PlannedAnnual Production

Metric Tons of Fine Copper X 1000

Mines

Cerro Corona

Michiquillay

Act

ual

/Pla

nn

ed

An

nu

alP

rod

uct

ion

Mill

ion

Met

ric

Ton

so

f F

ine

Co

pp

erX

10

00

0

100

200

300

400

500

600Magistral


Peruvian Copper Belts

Main Porphyry Belts, Mines and Projects in Peru

Metallogenic belts

0

1-10

10-50

50-200

200-500

Actual or Planned AnnualProduction Metric Tons of

Fine CopperX 1000

Mines Projects

Miocene porphyry belt

Eocene-Oligocene porphyry belt

Paleocene-Eocene porphyry belt


Other Copper Belts in Peru

Metallogenic belts

Upper-Middle Jurassic IOCG & Porphyry Cu

Upper Jurassic - Albian VMS Cu-Zn-Au

Lower Cretaceous IOCG

Upper Cretaceous Porphyry Cu

Upper Cretaceous-Paleocene VMS Cu-Zn-Au

Permian skarns Cu

0

1-10

10-50

50-200

200-500

Metric Tons ofFine Copper X 1000

Mines Projects


Peruvian Copper Production 1998-2025M

etri

cTo

ns

of

Fin

e C

op

pe

r(M

illio

ns)

0.0

1.0

2.0

3.0

4.0

5.0

6.0 Río Blanco Cañariaco

MichiquillayHaquiraZafranal

Los Calatos

Met

ric

Ton

so

f F

ine

Co

pp

er

(Mill

ion

s)

actual forecast

Miocene Porphyry Belt

Eocene-Oligogocene Porphyry Belt

Paleocene-Eocene Porphyry Belt

Other type of deposits

Tía MaríaMina JustaConstancia

La GranjaMinas CongaLos Chancas

El GalenoMagistral

Quellaveco+Cerro verde

2.5

4.9

4.1

2.2

ToromochoLas Bambas

Quechua+Toquepala

3.4

4.2

1.4


Porphyry

Deposit Types

State

Exploration projetsFuture Producers

Mines

Deposit Types in the MainPorphyry Belts in Peru

Metallogenic beltsMiocene porphyry belt

Eocene-oligocene porphyry belt

Paleocene-Eocene porphyry belt

Skarn

Other


Deposits Types in Other Beltsin Peru

Porphyry

Deposit Types

State

Exploration projetsFuture Producers

Mines

Skarn

Other

Metallogenic belts

Upper-Middle Jurassic IOCG & Porphyry Cu

Upper Jurassic - Albian VMS Cu-Zn-Au

Lower Cretaceous IOCG

Upper Cretaceous Porphyry Cu

Upper Cretaceous-Paleocene VMS Cu-Zn-Au

Permian Skarns Cu


Peruvian Copper Production by Deposit Types

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1998 1999 2000 2001 2002 2003 2004 2005 2006 2006 2008 2009 2010 2011 2012

Met

ric

Ton

so

f Fi

ne

Co

pp

er

(Mill

ion

s) Porphyry

Skarn

Others

2007


Historic Cumulative CopperProduction in Peru

< 1

1-3

3-5

5-7

Million Metric Tonsof Fine copper

Metallogenic belts

5 MMT18%

2 MMT7%

16 MMT57%

Antamina4.1 MMT

Toquepala6.7 MMT

Tintaya2.0 MMT

Miocene porphyry belt

Eocene-oligocene porphyry belt

Paleocene porphyry belt

Mines

Total Production in Peru

28 MMT (100%)Production from main porphyry belts

23 MMT (82%)

Other Cu belts: 2 MMT (7%)Other non-Cu belts: 3 MMT (11%)


Copper Resources and Reserves in the Main Porphyry Belts

in Peru

85 MMT39%

44 MMT20%

63 MMT29%

Total reported resources in Peru

218 MMT (100%)Resources from porphyry belts

192 MMT (88%)Other Cu belts 11 MMT (5%)

Other non-Cu belts 15 MMT (7%)

Millions Metric Tonsof Fine Copper

< 1

1-5

5-10

10-15

> 15

MinesFuture

ProducersExploration

Projects


2120 19

15 14

10 10 9 97 7

5 4 4 4 4 3 3 3 3 3 2 2 2 2 2 2 21 1

0

5

10

15

20

25

Main Copper Resources and Reserves in Peru (> 1 Million MT)

Mill

ion

met

ric

ton

so

f f

ine

co

pp

er

Millions Metric Tons of Fine Copper

< 1

1-5

5-10

10-15

> 15

MinesFuture

ProducersExploration

Projects


Geological Models of the MainPorphyry Belts in peru

Geological Models - Paleocene Magmatic Belt


Geological Models - Eocene-Oligocene Magmatic Belt

Andesite


Geological Models - Miocene Magmatic Belt

Yanacocha

Andesite


Facts and Challenges

Distinctive Features of Main Deposit Belts and Types

Mostly large to very large,

+300 MMT to 4,000 MMT

Mid- to large, +400 MMT to

1,800 MMT

Mid- to very large, +400 MMT

to 4,000 MMT

Copper 0.39 - 0.47 % Cu 0.44 - 0.93 % Cu 0.28 - 0.69 % Cu

Gold 0.03 g/t Au 0.04 - 0.25 g/t Au 0.05 - 0.90 g/t Au

Silver 2.20 - 3.10 g/t Ag 1.45 - 4.75 g/t Ag 1.24 - 6.90 g/t Ag

Moly 0.02 % Mo 0.013 - 0.030 % Mo up to 0.010 % Mo

Commonly, intense

development of oxide and

secondary sulphide vertical

zones

Limited Limited

Clusters of mid- to large-

sized porphyry.

Mineralization occurs in the

intrusives as well as in their

country rocks.

Complex, mineralized skarn

bodies are small- to mid-size

and irregular, mostly above

porphyries but also

underneath intrusive bodies.

Gold mineralization occurs

Structurally aligned

porphyries. Mineralization

occurs in the intrusives as

well as in their country

rocks. Gold mineralization in

sandstones and bulk-

tonnage, polymetallic

mineralization in skarns

frequently associated

Geometry

Size

Paleocene Eocene-Oligocene Miocene

Weathering

Aver

age

grad

e

Belt

Features


Exploration Challenges

• Among the challenges we have in the short term is to guarantee the implementation of future copper producers in Peru and ensure that the initial exploration projects become mining operations. In the long term it is necessary to increase investment in mineral exploration to expand reserves and resources and discovery of new deposits.

• Promoting mineral exploration is essential to increase both metal production and long-term resources.

• Both financial and technical incentives are required and social barriers have to be removed.

• INGEMMET offers 1:100,000 and 1:50,000 scale regional maps covering the whole of the country and most of the territory is also covered by drainage geochemical sampling.


• Regional geophysical surveys (magnetic and radiometric) areinsufficient and they need to improve, innovate and implementnew methods

• Radiometric age data is extensive, but still needs to be expanded.

• Isotopic studies useful to distinguish most productive mineralizedsystems and to identify mineralization sources are still very limited.

• Studies of magmatic arcs related to mineralized systems areinsufficient.

• Private companies, INGEMMET and universities need to joint effortsto increase mining-geologic scientific and technical development ofPeru.

Exploration Challenges


THE FUTURE COPPER ENDOWMENT IN PERU

Jorge ACOSTA ALERecursos Minerales y Energéticos – INGEMMET

[email protected]

The Future Copper Endowment in Peru

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