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TSX-V:LA

Los Andes Copper Ltd

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Market:
TSX-V
Market Cap:
$188.8 m
Price
6.95 CAD
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7.50
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1.95

Vizcachitas

Overview

Vizcachitas is a copper-molybdenum porphyry deposit in central Chile currently undertaking a pre-feasibility study.

Los Andes Copper Ltd. owns 100% of the Vizcachitas project, one of the largest advanced copper deposits in the Americas.

Highlights

Copper, molybdenum and silver porphyry.

Positive PEA published in June 2019[1].

Currently working on Pre-Feasibility Study.

For the selected PEA case of 110,000 tpd process capacity

At US$ 3.50/lb Copper

  • IRR of 26.7%
    • After-Tax NPV @8% of US$ 2.7 billion
    • After-Tax NPV @5% of US$ 4.6 billion

At US$ 3.00/lb Copper

  • IRR of 20.7%
    • After-Tax NPV @8% of US$ 1.8 billion
    • After-Tax NPV @5% of US$ 3.2 billion
  • Payback period of 3.4 years from initial operations; 5.4 years from initial construction
  • 45 year mine life
  • 0.53% CuEq average headgrade to mill over first 5 years of operation
  • C1 Cash Cost (net of by-product credits) of US$ 1.36/lb for first 8 years of operation; US$ 1.58/lb for LOM

Measured & Indicated Resource of 1,284 million tonnes at a copper grade of 0.40% and a copper equivalent grade of 0.45% (0.25% copper cut-off) with

  • 11.2 billion pounds of copper
  • 400 million pounds of molybdenum
  • 43.4 million ounces of silver

Metallurgical test work has indicated high recoveries of clean copper concentrate

No off-take encumbrances

PFS to be completed in Q4 2021

Production expected 2025/2026

Good local and regional infrastructure

Active social program working with local communities

 

Location and Infrastructure

The Vizcachitas project is located approximately 150 km northeast of Santiago, in the Rio Rocin Valley, at a road distance of 46 km from the town of Putaendo in an area with very good infrastructure.

Resource Estimates

The latest resource estimate was updated and published as part of the Preliminary Economic Assessment on June 13, 2019. It is based on a geological model that was confirmed by the 2015-2016 and 2017 drill programs.

The table below shows the mineral resources estimated within the Vizcachitas deposit, with an Effective Date of June 5, 2019. The estimate was based on the drill hole sample assays, geological model interpretation and geostatistical analysis employing industry standard methods and was classified in accordance to the CIM standards on Mineral Resources and Mineral Reserves (CIM 2010), as further detailed on the 2019 Preliminary Economic Assessment.

The in-pit mineral resources are reported using a 0.25% copper cut-off.

  • Measured mineral resources are 254.4 million tonnes grading 0.439% copper, 119.2 ppm molybdenum and 1.26 g/t silver giving a 0.489% copper equivalent.
  • Indicated mineral resources are 1,029.67 million tonnes grading 0.385% copper, 146.9 ppm molybdenum and 1.00 g/t silver giving a 0.442% copper equivalent.
  • Measured and Indicated mineral resources are 1,284.06 million tonnes grading 0.396% copper, 141.4 ppm molybdenum and 1.05 g/t silver giving a 0.451% copper equivalent.
  • The Inferred mineral resources are 788.82 million tonnes grading 0.337% copper, 127.0 ppm molybdenum and 0.88 g/t silver giving a 0.386% copper equivalent.

Environmental and Permitting

For the drilling associated with the Pre-Feasibility Study an Environmental Impact Statement (DIA) must be approved. For the construction and operation of the mine an Environmental Impact Study (EIA) must be completed

Environmental Impact Statement (DIA)

The Environmental Impact Statement for the required drilling to complete the Pre-Feasibility Study, is currently underway. This permit will cover further exploration drilling and any other drilling that the Project may require as its development advances with up to 350 drill holes to be completed on up to 124 platforms over the next four years.

The Company recently conducted a Public Participation Process in connection with the DIA and expects to respond to comments and questions raised during this process by March 13, 2021. Once this process is completed, the environmental permit application should be submitted for voting by the Regional Environmental Committee during March/April 2021.

Environmental Impact Study (EIA)

  • Required for approval of the construction and operation of the mine.
  • This is a comprehensive study including multiple baseline studies and detailed design specifications of key project elements and community participation activities.
  • Current work underway includes the identification of environmentally sensitive areas to be avoided during project design, seasonal environmental baseline work and the implementation of the river monitoring stations for hydrology and water quality baseline studies.
  • Additional impact studies and baseline work (air quality, paleontological, archeological, etc.) will be required once the Project is further defined.
  • The preparation of the EIA approval package lasts 15-18 months.
  • While variable, the approval process once filed can last 12-15 months.
  • Once the approval has been granted, multiple sectoral permits need to be processed. Approval of the EIA covers the environmental approval of these permits but the processing is still required.

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Qualified Person Statement

Los Andes Copper activities are under the supervision of Mr. Amberg, CGeol FGS, Chief Operating Officer of Los Andes Copper Ltd. Mr. Amberg is a “qualified person” as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Amberg has approved the technical information in this presentation. For additional information regarding the Vizcachitas Project, see the technical report titled “Preliminary Economic Assessment of the Vizcachitas Project.”, with an effective date of May 10, 2019 prepared by Tetra Tech Chile S.A. (the “2019 PEA”), a copy of which is available on SEDAR at www.sedar.com under “Los Andes Copper Ltd.”.

1 NoteThe Preliminary Economic Assessment is considered preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Canada and Chile.

Fernando Porcile — Executive Chairman

Fernando Porcile is a mining engineer with over 50 years of experience in the mining industry. He has been responsible for the development, implementation, commissioning and operation of new mining projects and the management of various world-class operations. His experience with engineering companies is vast and varied, as senior process engineer, and as client and consultant. Most of his experience has been in copper, but has also included nitrates, iodine and iron ore. During the period 2010-2014, he was Director of the Codelco Board and lately he has been consultant for other mining companies developing copper, iron and gold projects.

Mr. Porcile was President of Compañía Doña Inés de Collahuasi in the period 2007-2009; he was also President of the Falconbridge Copper Business Unit for five years. During his presidency Falconbridge was developing projects that included El Morro, Pachón and the expansion of Collahuasi. Prior to these responsibilities he was Vice President Project Development for BHP Billiton’s Base Metals Division and before that President of Compañía Minera Cerro Colorado of Rio Algom, participating in the development of the Antamina and Spence projects.

From 1989 to 1991, he was Operations Manager of Soquimich, responsible for the operations to produce nitrate and iodine in Chile’s Region of Antofagasta. Mr. Porcile worked for Codelco for nine years, from 1980-1989. At Codelco he worked in the El Teniente and Chuquicamata Divisions. At Chuquicamata he was General Manager at a time when a large expansion program was developed at the mine, concentrator, smelter, electrolytic refineries, leaching and supporting facilities.

Mr. Porcile holds a Masters of Science in Mineral Engineering from Columbia University in the city of New York. Prior to that, he studied Mining Engineering at the University of Chile.

Antony Amberg — CEO & Chief Geologist

Antony Amberg is a chartered geologist with 32 years of diverse experience working in Asia, Africa and South America. Amberg is a Qualified Person under NI 43-101 and has managed various exploration projects ranging from grassroots through to JORC compliant feasibility studies. In 2001, he returned to Chile, where he started a geological consulting firm specializing in project evaluation and NI 43-101 technical reports. Amberg began his career in 1986 working with Anglo American in South Africa before moving on to work for Severin-Southern Sphere, Bema Gold, Rio Tinto and Kazakhstan Minerals Corporation.

Manuel Matta — Director of Vizcachitas Project

Manuel Matta is a mining engineer with 30 years of mining experience in operations, planning and projects. He has experience in M&A, asset optimization, due diligence for major projects worldwide and the development of concentrate treatment technology. Matta has also worked for Barrick Gold as vice president of project construction, responsible for constructing large capital projects worldwide. Before that, he worked at Rio Algom in the mid 1990s, where he worked with Fernando Porcile through all the development phases of the Spence copper project; from exploration to conceptual engineering, Pre-Feasibility and Feasibility. During this period, he also assisted Mr. Porcile’s team in optimizing the throughput of the recently commissioned Cerro Colorado copper mine. Matta worked for Falconbridge and Xstrata as vice president of projects and development, where he led the expansion of the Collahuasi project. He was also general manager of the Altonorte Smelter in Antofagasta, Chile, where he led the operation upgrade for this custom copper smelter, one of the world’s largest.

Harry Nijjar — CFO

Harry Nijjar holds a CPA CMA designation from the Chartered Professional Accountants of British Columbia and a BComm from the British Columbia University. He is currently a managing director of Malaspina Consultants and has been working with public and private companies for the past 10 years in various roles. He is also presently the CFO of Darien Business Development Corp. and Clarmin Explorations Inc.

Ignacio Melero — Director of Corporate Affairs and Sustainability

Ignacio Melero is a lawyer from Pontificia Universidad Católica de Chile. He has vast experience in corporate and community affairs. Before Los Andes, Melero was responsible for community affairs at CMPC, having managed community and stakeholder affairs for many pulp and forestry divisions throughout the country. Ignacio has also worked for the Government of Chile in the Ministry General Secretariat of the Presidency. He was responsible for the inter-ministerial coordination of the ChileAtiende project, a multi-service network linking communities, regional governments and public services.

Pedro Loch — Controller

Pedro Loch is a certified accountant with over 30 years of experience with multinational companies. Loch has worked as Regional Financial Officer for the Chilean subsidiary of Mincom International from 1997 to 2010. He has also worked at Raychem as a controller for Chile and Peru and he was a controller for seven years at the Chilean subsidiary of Transammonia Inc. in New York.

Magin Torres — Senior Metallurgist

Magin Torres is a metallurgist and mining engineer with a Master of Science in Extractive Metallurgy and Mining Engineering from the University of Chile. He has 12 years of experience as a process consultant in copper-moly, gold and iron operations. Before joining Los Andes Copper, Torres was in charge of milling operations at the Codelco Chuquicamata mine. He was the senior metallurgist at Minera Las Cenizas mine and the QA operations manager at SGS Minerals, Chile.

Magin is also a Competent Person in Extractive Metallurgy under the Chilean Mining Commission (Reg. No. 0409).

Alejandro Cassi — Manager of Community Relations

Alejandro Cassi is a sociologist and candidate for a Master’s Degree in Political Communication and Public Affairs. He has 10 years of experience in community management. Cassi has worked for Esval (water utility) in charge of communities, for Codelco as deputy manager for Community Relations for the Ventanas smelter and Kinross Chile as community relations specialist.

Vancouver, BC, Canada

Suite 880 – 580 Hornby Street
Vancouver, British Columbia
Canada V6C 3B6

Harry Nijjar
Tel: +1 (604) 639-3892
Fax: +1 (604) 684-0642

E-Mail: info@losandescopper.com

Santiago, Chile

Compañia Minera Vizcachitas Holding
Of 812, Augusto Leguia Norte 100
Las Condes, Santiago
Chile

Antony Amberg
Tel: +56 (2) 2954-0450

Head Office

Suite 880
580 Hornby Street
Vancouver, BC
Canada, V6C 3B6
Email: info@losandescopper.com
Phone: +1 (604) 639-3892
Fax: +1 (604) 684-0642

Chile Office

Compañia Minera Vizcachitas Holding

Suite 812
Augusto Leguia Norte 100
Las Condes, Santiago
Phone: +56 (2) 2954-0450

Stock Exchange Listing

TSX-Venture Exchange
(Trading Symbol LA)

Auditors

DeVisser Gray LLP, Chartered Accountants

Suite 401-905 West Pender St.
Vancouver, BC
CA, V6C 1L6

Corporate Counsel

Gowling WLG

Suite 2300
550 Burrard Street
Vancouver, BC
CA, V6C 2B5

Transfer Agent

Computershare Trust Company of Canada

4th floor – 510 Burrard Street
Vancouver, BC
CA, V6C 1L6

Investor Relations

Blytheweigh

4-5 Castle Court
London EC3V 9DL, United Kingdom