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Chile approves Capstone’s Santo Domingo EIA

9th July 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Base metals miner Capstone Mining has received approval of the environmental-impact assessment (EIA) for its 70%-owned Santo Domingo iron oxide/copper/gold project, in Region III, Chile.

The approved project included the construction of a mine, related infrastructure, copper and iron processing facilities, the development of a greenfield port and iron concentrate and seawater supply pipelines, as outlined in the July 2014 feasibility study.

"We are following a disciplined stage-gate approach and are moving the project forward in a phased manner, focusing on the copper portion of the project first, with the option to add iron facilities should the outlook for that market improve,” Capstone president and CEO Darren Pylot explained in a statement.

Capstone reported that it had completed internal analysis on a phased approach, which considered initial copper output at a reduced throughput rate of 30 000 t/d to 35 000 t/d and would advance the analysis to a feasibility study to determine the economic returns for this option.

A revised budget was currently being developed, but was expected to be at or below Capstone's initial 2015 guidance. The revised budget would be disclosed once it has been finalised, the company added.

Both Capstone's project partners Korea Resource Corporation and Posco E&C were supporting the phased approach and budget.

Capstone said its decisions regarding the Santo Domingo project were targeted at increasing the value of the project while ensuring financial flexibility for continued growth and security for the company's existing operations.

The decision on how and when to proceed with the project would reflect, among other factors, general and project specific market conditions, the financing capacity of Capstone and the project, project economics as well as alternative investment opportunities available to the company.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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