JOHANNESBURG (miningweekly.com) – South African miner Gold Fields' share price rose by almost 6% on Tuesday, after the company announced a "major gold discovery" in Peru.

The Canahuire deposit in southern Peru contains a mineral resource of 5,6-million gold-equivalent ounces, Gold Fields said, adding that the deposit had mineralisation potential beyond the extent of the drilling.

The inferred mineral resource for Canahuire is some 83,7-million tons at 1,9 g/t gold, 0,09% copper and 8,2 g/t silver.

The South African company's share price jumped by 5,9% to R102,8 a share on the JSE.

Gold Fields owns 51% and Compania de Minas Buenaventura 49% in the Chucapaca joint venture (JV).

"Geological indications are that there is significant upside at the Canahuire deposit, as well as other targets within the project area," Gold Fields CEO Nick Holland said in a joint statement with Buenaventura CEO Roque Benavides.

Gold Fields vice-president for exploration and business development Tommy McKeith said that the JV would complete an interim scoping study on Canahuire by June and, subject to a positive economic outcome, it would start with a prefeasibility study in July.

The JV company recently filed a modification to the environmental-impact assessment with Peru's Energy and Mines Ministry to permit expanded activities for further scoping and infill drilling. It expects to obtain approval by July, and would then start with drilling to define extensions of mineralisations to the west.

The Canahuire deposit is one of several targets in the 12 700-ha Chucapaca project area, which is on average 4 800 m high and located in the Altiplano area.

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