Showing posts with label Lumina Copper. Show all posts
Showing posts with label Lumina Copper. Show all posts

Thursday, January 17, 2013

Changing regulations delaying mining investments in Peru - Lumina Copper

Chinese joint venture Lumina Copper's US$2.5bn Galeno project in Peru's Cajamarca region has been delayed due to changing permitting regulations, and CEO Richard Graeme expects other mining companies are in the same boat.

"Government has been talking about [environmental impact study] approval changes and with that the information needed also changes, and who is going to review it, and I'm not exactly rushing to do things until I have some sort of direction," Graeme told BNamericas.

"To submit something to an agency which would not have the final say, I think would be ill-advised," he added.

The creation of a new government agency, Senace, in charge of evaluating environmental impact studies (EIS) has been the main cause for delay in completing Galeno's EIS, according to Graeme.

The company planned to submit Galeno's EIS in 2011, but community protests originally delayed submission and the company is now hesitant to submit the EIS during this time of transition. Lumina is now forecasting it will submit the EIS for evaluation in 2014-16.

"You must know who your audience is," Graeme said, adding that the uncertainty of whether or not the evaluation parameters will change has left the company in the dark.

Senace's creation was passed by congress in November 2012 and the agency is expected to begin operating in mid-2013. The related regulations and an implementation plan are due to be released next month.

Once regulation of the law is complete, the new agency will likely work together with the mines and energy ministry (MEM) for a period of time while the task of EIS evaluation is transferred over, according to former deputy environmental minister José de Echave.

Graeme expects the process to take no less than 14-15 months, and for that reason does not see the company submitting Galeno's EIS ahead of that timeframe.

According to the head of Peru's mines, oil and energy society SNMPE, a total of 20 mining projects planned for 2012-15, representing investments of over US$25bn, have been delayed due to social conflicts and bureaucracy.

The Galeno copper-gold-molybdenum porphyry property is expected to produce 144,000t/y of copper in concentrates over a 22-year mine life.

Lumina Copper is a 60:40 JV between China Minmetals and Jiangxi Copper.

Source: BNAmericas

Tuesday, September 25, 2012

Lumina shares bounce as fear of broader Argentine nationalism wears off

Lumina Copper's shareprice has climbed strongly in recent weeks, suggesting fear of Argentine nationalism in the mining sector has lessened after an April scare in energy

With a mood swing in mining equities, it appears investors are forgiving Argentine President Cristina Fernández de Kirchner for her nationalistic tendencies at least just a little.
Back in April, junior miners in the country were pounded on the markets after Kirchner nationalized most of energy giant YPF. The move struck fear across sectors in Argentina, particularly in mining where many foreign companies operate.
Though many analysts noted at the time that the state grab on energy assets was unlikely to spread into mineral explorers and miners, the damage was done. The spectre of nationalism scared shareholders and there was an ensuing selloff in mining and exploration equities with major Argentina exposure.
One of the more notable examples was Lumina Copper, which among other assets owns the billion-tonne-plus Taca Taca copper-gold project in Argentina. Its shareprice tumbled amid a broader market selloff, falling from over C$15 to under C$8.00 in the month after Kirchner sunk her state claws into YPF.
Analysts, given their take on the likelihood Kirchner would go after explorers and miners, widely described the selloff as a buying opportunity. Scotiabank's Tom Meyer titled an April note "Headline Risk Provides Buying Opportunity" and argued, if anything, the Argentine state's heart for foreign exploration and mining companies had warmed as the government recognized the need to increase foreign direct investment.

(But that said, Argentina has made it broadly more difficult to get cash out of the country, an issue that is not specific to miners.)
Likewise, analyst Adam Low with Raymond James described the hit to Lumina's shares as excessive and said it wasn't warranted. As noted in these pages Low argued supply-demand in the copper industry in particular bolstered the case against nationalisation in the mining sector in part because the country has no refining capacity.

"Nationalizing copper mines has no strategic value when the country has no means to refine the output," Low wrote in April.
Lumina's shareprice bumbled along through most of the past four months, but as the mining market picked up steam in recent weeks, its shareprice has surged, outpacing the Venture, and climbing an impressive 25 percent to over C$11 this week without a whiff of any big company news. In this it seems fair to say the heightened fears of an epidemic of nationalism have dissipated and junior equities in Argentina are regaining some lustre.

Friday, August 31, 2012

Codelco CEO: $100 billion mining investment in Chile by 2020 unlikely

Chile's goal of attracting $100 billion in mining investment by 2020 is unlikely to be achieved because of setbacks to several planned mining and energy projects, Thomas Keller, chief executive of state copper giant Codelco, said on Thursday.

Many analysts had already called the target unfeasible, citing Chile's ballooning energy problems, dwindling ore grades and volatile world copper prices -- all of which may cause companies to reconsider projects.

On Tuesday, Chile's top court rejected the planned $5 billion Central Castilla thermoelectric power plant, citing environmental reasons and potentially jeopardizing a string of new mines planned in the mineral-rich Atacama region.

"The portfolio of $100 billion appears very ambitious. Clearly it's a little optimistic to make it materialize within the time frame initially forecast," Codelco's CODEL.UL CEO said during a news conference.

"Indeed some projects have already been delayed and likely won't be achieved in line with what was originally programmed," he added.

Chile, once Latin America's investor darling, is also experiencing an increase in environmental and social opposition to mega projects that is gaining traction in courtrooms.

While mining helped Chile's economy grow 5.4 percent in the first half of this year, the country has the highest level of income inequality among the 34 OECD countries, according to a report by the body last year, and many Chileans feel they have been left out of the country's copper boom.

Chile's government will on Thursday send a bill to Congress intended to connect its two main energy grids to soothe criticism, soften high energy prices and bolster the country's shaky transmission system.

Lumina Copper's Caserones mine and Barrick's Pascua Lama mine are among the mines gearing up to operate in the area near where Castilla was planned.

But the rejection of Castilla may lead to delays in Codelco's small Salvador project as energy prices will be hard to stomach, Keller said in an interview with Chile's Diario Financiero on Wednesday.

Keller is overseeing the state miner's own challenging investment plans to boost copper output to more than 2 million tonnes from around 1.7 million tonnes. Chile, which produces about one-third of the world's red metal, mined 5.24 million tonnes of copper last year, down 3.2 percent from 2010 levels.

July's copper output sank 8.5 percent from June due to maintenance of conveyer belts and grinding equipment, the INE statistics agency also said on Thursday.

More than $22 billion and over 8,000 megawatts in energy investment in Chile have been suspended, according to Libertad y Desarrollo, a conservative Chilean think-tank.

Brazilian billionaire Eike Batista, whose MPX Energia SA was spearheading the Castilla project, reportedly said via Twitter that investing in Chile "was becoming impossible," according to local media, which added that the tweet was later deleted.

Source: Reuters

Thursday, June 7, 2012

Lumina discovers two new copper zones at its Taca Taca project, Argentina -- Intersects 222 meters grading 0.83% Copper Equivalent

Lumina Copper Corp. (TSX Venture: LCC) (the "Company") is pleased to announce that it has discovered two new copper mineralized zones at its 100% owned Taca Taca copper/gold/molybdenum deposit located in Salta province, Argentina.

The first zone is located approximately 250 meters northwest of the current National Instrument 43-101 ("NI 43-101") mineral resource estimate and has been defined to date by 24 holes (assay results for 4 holes received to date) over an area of 600 meters in a east/west direction by 600 meters in a north/south direction. The zone is characterized by high grade supergene copper mineralization associated with a broad north/south trending fault zone. Drill results received to date are highlighted by hole RC-19 that intersected 222 meters grading 0.69% copper, 0.13 g/t gold and 0.01% molybdenum (0.83% copper equivalent(1), including 40 meters grading 1.67% copper, 0.38g/t gold and 0.02% molybdenum (2.01% copper equivalent).

The second zone is located 750 meters to the north of the current NI 43-101 mineral resource and has been defined to date by hole 96, which intersected supergene copper mineralization starting 28 meters below surface over a length of 116 meters and graded 0.40% copper and 0.53g/t gold (0.71% copper equivalent) including, from 28 meters below surface, 18 meters grading 1.10% copper and 2.1g/t gold (2.32% copper equivalent).

In addition to the discovery of the two new zones, Lumina has also received the assay results from three step-out holes (holes 84, 89 and 94). Of particular note was hole 94 drilled approximately 150 meters to the south of hole 87 that previously defined the southern limit of the NI 43-101 mineral resource estimate. Hole 94 intersected 94 meters of supergene copper mineralization grading 0.87% copper and 0.02g/t gold (0.88% copper equivalent) and a deeper primary copper zone of 62 meters grading 0.33% copper. A further 32,400 meters of completed core and reverse circulation ("RC") drilling await assaying including material from 24 step-out holes drilled to the northeast and south of the current NI 43-101 mineral resource estimate.

Details of the relevant intercepts from the latest holes are shown in the table below with locations shown on the map attached:

Hole No. From

CuEq (1)

RC-19 180 402 222 0.69 0.13 0.01 0.83
180 220 40 1.67 0.38 0.02 2.01
Significance: Discovery hole of new Northwest zone. Drilled 750 meters to the northwest of the current NI 43-101 mineral resource estimate.
RC-23 18 26 8 0.64
and 170 184 14 0.25
and 210 220 10 0.30
220 372 152 0.74 0.06 0.01 0.83
including 220 294 74 1.13 0.07 0.01 1.23
Significance: Drilled 150 meters to the south of hole RC-19 in the newly discovered Northwest zone further defining continuity of the zone’s overall grade and higher grade nearer surface zone.
RC-29 82 124 42 0.50 0.05 0.00 0.53
including 86 100 14 1.00 0.08 0.00 1.05
and 192 224 32 0.32 0.04 0.00 0.34
Significance: Drilled 150 meters to the east of hole RC-23 in the newly discovered Northwest zone. Mineralization remains open to the east.
RC-30 102 112 10 0.34 0.03 0.00 0.36
and 124 160 36 0.61 0.08 0.01 0.72
and 196 296 100 0.52 0.06 0.01 0.61
Significance: Drilled 150 meters to the south of hole RC-23, extending newly discovered zone to the south. Mineralization remains open to the south.
TT11-84 232 268 36 0.40 0.02 0.02 0.53
and 570 696 126 0.28 0.04 0.02 0.42
Significance: Drilled in the southeastern zone, 450 meters to the southeast of hole 80 and 500 meters to the southwest of the NI 43-101 mineral resource.
TT11-89 No significant intercepts
Significance: Drilled in the southeastern zone 450 meters to the northeast of hole 80.
TT11-94 106 200 94 0.87 0.02 0.00 0.88
And 218 280 62 0.33 0.00 0.00 0.33
Significance: Drilled 150 meters to the south of hole 87 further extending the NI 43-101 mineral resource to the south. Mineralization remains open to the south and southwest.
TT11-96 3 28 25 0.59
28 144 116 0.40 0.53 0.00 0.71
Including 28 46 18 1.10 2.10 0.00 2.32
Significance: Discovery hole of north zone. Drilled 750 meters to the north of NI 43-101 mineral resource estimate. Mineralization open in all directions

(1) Copper equivalent calculated using US$2.00/lb Cu, US$800/oz Au and US$12.00/lb Mo and is not adjusted for metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6).

To date, 147 core holes totalling 83,888 meters and 138 RC holes totalling 27,504 meters have been completed at Taca Taca. The planned 163,500 meter drill program is now focused on defining the newly identified northwest and north zones and completing infill drilling on the existing NI 43-101 mineral resource estimate.

The Taca Taca copper/gold/molybdenum project, comprising approximately 2,500 hectares, is located in the Puna region of northwestern Argentina in Salta province, approximately 230 kilometres west of the provincial capital of Salta and 120 kilometres east of the world's largest copper mine, Escondida.

On May 7, 2012, the Company announced that it had received an independent, updated NI 43-101 compliant mineral resource estimate for the project that at a 0.4% copper equivalent cut-off contains indicated sulphide resources of 824 million tonnes grading 0.59% copper, 0.12g/t gold and 0.018% molybdenum (0.75% copper equivalent(2)) containing 10.7 billion pounds of copper, 3.1 million ounces of gold and 320 million pounds of molybdenum and inferred sulphide resources of 938 million tonnes grading 0.48% copper, 0.08g/t gold and 0.014% molybdenum (0.60% copper equivalent(2)), containing 9.8 billion pounds of copper, 2.4 million ounces of gold and 283 million pounds of molybdenum. In addition, an oxide gold resource was also defined within the leached cap that at a 0.2 g/t gold cut-off contains indicated resources of 198 million tonnes grading 0.27g/t gold containing 1.7 million ounces of gold and inferred resources of 81 million tonnes grading 0.26g/t gold containing 0.7 million ounces of gold. This mineral resource estimate does not incorporate or reflect the drilling results described above.

The updated NI 43-101 technical report detailing the mineral resource estimate will be filed on SEDAR ( and the Company's website ( by June 21, 2012.

Andrew Carstensen, CPG, Vice President, Exploration and the Qualified Person as defined by NI 43-101 for the Taca Taca project has reviewed and approved the content of this press release.

(2) The copper equivalent cut-off grade used in the calculation of the mineral resource estimate was determined using US$2.00 / lb copper, US$800 / oz gold and US$12.00 / lb molybdenum and was not adjusted for metallurgical recoveries as these remain uncertain. The formula used in the calculation was as follows: CuEQ = Cu% + (Au g/t x 0.583) + (Mo% x 6).


Signed: "David Strang"

David Strang, President & CEO

For further information contact:

David Strang, President & CEO
tel: + 604 646 1880
fax: + 604 687 7041

CAUTION REGARDING FORWARD LOOKING STATEMENTS: This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, copper and molybdenum, the timing of exploration activities, the estimation of mineral reserves and mineral resources, the results of drilling, planned drilling meterage, number of drill rigs, areas of focus for the drill program, and Lumina Copper's commitment to, and plans for developing the Taca Taca project. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lumina Copper to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development of the Company's Taca Taca project, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, copper and molybdenum, as well as those factors discussed in the sections relating to risk factors of our business filed in Lumina Copper's required securities filings on SEDAR. Although Lumina Copper has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.

There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Lumina Copper does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws

Wednesday, April 18, 2012

Lumina Copper shares pounded on spectre of broader Argentine nationalism

Analysts say market sell-off misplaced and provides opportunity to buy premier copper story in Argentina.

HALIFAX, NS Argentina's cut-throat nationalism in oil bled across the wider resource sector on Tuesday, pummeling one Canadian mineral explorer, Lumina Copper (TSX-V: LCC), especially hard.

At one point, Lumina, which owns a massive copper-gold deposit in the country's Salta province, fell by 23 percent to C$12.15 about two hours into trading in Toronto.

Earlier in the day Argentina's President, Cristina Kirchner thrust the words nationalism and Argentina across news wires after she announced the government would expropriate a 51-percent stake in YPF, an Argentine oil company that is majority owned by Spanish energy giant Repsol.

The threat of nationalism in Argentina is hardly a new, with past state expropriations gobbling up pensions plans and Argentina's national airline. But the force of the oil grab - more than most had expected - made for obvious collateral damage in other resource sectors.

As Lumina cratered this morning, some traders were obviously selling on fear that if Kirchner was willing to go so far on oil, there was little keeping her from dipping into copper, or gold, or any other industry for that matter. Meanwhile, as the sells came in on Lumina at increasingly lower prices, other traders were obviously buying on the premise those nightmares were just that, bad dreams that would not come to pass in reality.

Analysts contacted by Mineweb Tuesday agreed that Lumina had fallen on fear of broader nationalism in Argentina's resource sectors stemming from Kircher's YPF grab. But these analysts were also unanimous that the panic was unwarranted.

Indeed Scotiabank analyst Tom Meyer entitled a research note about Lumina on Tuesday "Headline Risk Provides Buying Opportunity" and Raymond James analyst Adam Low called the Lumina beating - one it had started to massively recover from as of presstime - a "sympathy play" and argued it was unlikely Argentina would ever touch copper.

To Low, supply and demand fundamentals, categorically different in oil versus copper, speak for themselves. Argentina imports vast amounts of fuel. That is in fact at the heart of Kirchner's stated decision to expropriate the YPF stake as she is unhappy with Repsol's management of YPF and its alleged lacklustre essays to bolster domestic oil supplies.

It is a point of contention with which Repsol vociferously disagrees as it contends the supply issue has more to do with Argentina's price controls than anything else.

The copper market in Argentina, on the other hand, is nothing like this and that augurs well for juniors and miners, analysts argue.

Low pointed out that Argentina uses about 38,000 tonnes of refined copper a year. Compare that to production: At the only operating copper mine in Argentina, Alumbrera, production was 117,000 tonnes copper in concentrate, Low said.

In other words, copper supply is not an issue for Argentina - and by extension its President. And anyway, Low said, "It makes no sense for Argentina to nationalise the copper industry because they don't have the capacity to smelt it."

And if it did? In a research note about Lumina's share drop, Low added to his argument, writing, "Even if Argentina had a copper smelter, nationalization of copper mines would not be logical as domestic demand for copper is far less than the output from the mines."

Furthermore, Scotiabank's Meyer reasoned that Argentina is job hungry and - despite the latest move to expropriate in the oil industry - it is actually looking to appeal more to foreign investors to grow domestic industries, not less.

"In order to do this, alignment of federal and provincial policies towards a more ambitious and constructive investment climate is underway," Meyer argued. "Unfortunately...those companies or industries that do not show the willingness to spend or invest in a timely fashion face the risk of government pressure and/or worse, ‘nationalization.'

"We believe the fears that the mining sector faces nationalization are misplaced. In fact, we have observed a slightly more positive stance in Argentina towards mining. Unfortunately this has been overshadowed by nationalization risks that largely pertain to the energy sector."

That pro-mining vibe appeared to pull Lumina Copper back up from the deeps Tuesday afternoon. At presstime it had regained most of the day's loss, and was trading around C$15.23 a share.