Peru Emerges as a Mining Hotspot in 2022 with Streamlined Permitting
Peru's mining industry has been experiencing a notable upward trajectory in recent years, and this trend is expected to continue as investors pour money into various projects. The country's mining construction portfolio currently stands at $56 billion and is likely to expand further following the mining minister's commitment to streamlining the permitting process.
This renewed interest in the sector presents an excellent opportunity for major precious metals producers such as Rio Tinto plc, Barrick Gold Corp, Fortuna Silver Mines Inc, and Gold Fields Limited, as well as exploration companies like Oro X Mining Corp.
Oro X Mining Corp is a gold exploration company focused on developing its gold projects in the mining-friendly environment of Peru. Throughout 2020, the company underwent significant changes, including a name change, new management, multiple acquisitions, and successful capital raising.
Peru's appointment of Jaime Galvez as the new head of the Ministry of Energy and Mines (MINEM), with a vow to streamline the consultation period preceding the granting of mining licenses, signals positive changes in the country's mining regulations. These potential reforms not only expedite ongoing projects but also ensure the security of existing operations while promoting investment and exploration.
These reforms present a favorable outlook for Oro X Mining, which has acquired two promising gold projects in the region. In October 2020, the company finalized the acquisition of the Coriorcco and Las Antas options, both high-grade gold exploration assets located within an established metallogenic belt in the San Juan de Lucanas Mining District of Peru. Simultaneously, Oro X Mining successfully closed a $6.25 million private placement, earmarked for exploration activities at its 2,000-hectare past-producing high-grade Coriocco gold project.
Oro X Mining's flagship project, Coriocco, exhibits 17 known mineralized veins at the surface, with widths ranging from 1.0 to 2.5 meters within a 700m by 800m zone. Previous exploration activities at the site involved surface channel sampling and trial mining from 2010 to 2011, which included the development of three portals and over 400m of sub-horizontal mining on three veins, reaching depths of up to 60m below the surface within the silica cap of the Coriorcco dome structure. Historic development on two of the tested veins resulted in the extraction of over 7,500 tonnes of material averaging 7.5 grams per tonne (g/t) gold. Additionally, limited surface rock sampling by previous operators returned significant results, including samples of 22.90 g/t Au, 19.25 g/t Au, 14.20 g/t Au, and 13.05 g/t Au. The average grade from 181 surface samples was 1.91 g/t Au.
Peru's mining industry has been historically significant for over 500 years and has been home to numerous high-grade gold and copper projects. In 2019, Peru ranked as the seventh-largest gold-producing country and the second-largest copper producer, with estimated copper mine production of 2.4 million metric tons. Furthermore, Peru is also a significant silver producer.
Although Barrick Gold Corp, a major player in the gold industry, has shifted its focus away from projects in Peru, its previous operations in the country played a crucial role in solidifying Peru's position as one of the world's top gold producers. Rio Tinto plc, another prominent player, has a mining history in Peru dating back to the 1990s and has made significant copper deposit discoveries in the region. Fortuna Silver Mines Inc and Gold Fields Limited are among other precious metals producers with investments in the mining-friendly environment of Peru.
