(44% with potential to increase to 100%)
Visit our Cuzco Photo Gallery
Strike has two areas of focus within the Cuzco Project:
- Cuzco Lump: The development of a one to two million tonnes per annum lump iron ore operation mining high grade (+60% Fe) near surface hematite mineralisation with the direct shipping ore (DSO) being transported to the existing port of Matarani through a combination of trucking and rail transport; and
- Cuzco Stage 2: The development of a second 20 million tonnes per annum mining operation and second slurry pipeline to integrate with the 20 million tonnes per annum mining operation proposed at Apurimac with the concentrate product being transported to the coast through the connection of a second slurry pipeline to the first slurry pipeline.
Lump Iron Ore Study
Strike has completed a conceptual study on a possible lump iron ore mining operation on the basis of the following criteria:
Category | Value |
|---|
Annual Production Rate | 1 million tonnes per annum |
Operational Life | 20 years (@1 Mt/pa) |
Product Specification | -30/+6mm Lump Ore of ~64% Fe |
Product Bulk Density | 3.4m3/tonne |
Mining | 3:1 Strip Ratio 35 metre deep pit maximum |
Road hauling vehicles to be used | Nominal 30 tonne capacity rigid bodied trucks |
Rail Wagon | 50 tonne payload capacity |
Cost Variance | -10%/+40% |
The study has indicated an estimated capital cost of approximately US$156.6 million and an estimated operating cost of US$73.08/tonne.
Having reviewed the study and based upon current and projected prices for the proposed iron ore product relative to estimated operating costs, Strike does not believe this one million tonne per annum lump iron ore operation presently represents an economically viable proposition. As such Strike does not believe it is appropriate to conduct any further work on a trucking/rail operation from the Cuzco Project area.
Exploration and Geology
The project area is centred on a large 4 kilometre x 4 kilometre circular magnetic anomaly which contains outcrops of high grade of iron ore.
Drilling has so far defined the dimensions of the mineralised body as being approximately 2,500 metres long by 800 metres wide, in a zone in which massive iron oxide deposits occur in 36 outcrop locations along a 6 kilometre northwest trend.
As a consequence of the recent settlement with D&C Group and MAPSA (Positive Settlement of Disputes in Peru), Strike Resources Limited is currently undertaking a review of its objectives, plans and timetable with respect to the exploration and development of the Apurimac and Cuzco Iron Ore Porjects.
Print Page
Text Only