In its first-time mineral resource estimate for the Sierra Gorda mine in Chile, South32 has confirmed a large-scale, long-life copper deposit with significant growth potential.
The sulphide mineral resource estimate was reported at 1.89 billion tonnes, averaging 0.36 per cent total copper, 0.016 per cent total molybdenum and 0.06 gold per tonne.
This included a contained 6.81 million tonnes of copper, 296,000 tonnes of molybdenum and 3.58 million ounces of gold, at a total copper equivalent grade of 0.41 per cent.
South32 acquired a 45 per cent interest in Sierra Gorda in February 2022 and has joint control alongside 55 per cent partner, copper miner Kombinat Górniczo-Hutniczy Miedzi (KGHM) Polska Miedź.
South32 intends to execute the capital-efficient plant de-bottlenecking project and progress study work for its fourth grinding line expansion.
The fourth grinding line has the potential to increase copper output by 15–20 per cent, with a final investment decision for this expansion planned for the second half of the 2024 financial year.
South32 is exploring near-mine and regional opportunities at Sierra Gorda, with further drilling campaigns planned to test the potential for further growth.
An exploration drilling campaign is already underway at the priority Catabela Northeast copper porphyry prospect, approximately 3km from Sierra Gorda’s current operations.
South32 also has plans to study options to realise value from oxide material that is stockpiled at surface.
With significant historical capital investment, the Sierra Gorda operation is serviced by established infrastructure, including renewable power and a seawater pipeline to its large open pit-mine.