Pampa de Pongo Iron Project

The Environmental Impact Assesment (EIA) describes activities related to construction stages as well as the ones for operation stages in order to allow the extraction of iron ore concentrate at 98,300 tonnes/day through an open-it operation. The implementation of a processing plant for iron concentrate is included with a production capacity of 61,698 tonnes/day.

The EIA contains descriptions of physical components, biological, social baseline, characterisation of environmental impacts, environmental management measures, measures of conceptual closure.

According to directorial resolution Nº044-2015-MEM/DGAAM given on January 22nd 2015, the Pampa de Pongo Iron mine project EIA study was approved meeting the technical requirements for the Peruvian Ministry of Energy and Mines and the environmental local regulations.

Source: Peruvian Ministry of Energy and Mines

Geophysical survey for Seismic refraction and Multichannel Analysis of Spectral Waves (MASW) methods for both Pampa de Pongo and Sombrerillo substations as well as for the respective port.

Source: ZER Geosystem Perú S.A.C

Execution of Environmental Impact Assessment (EIA) studies for the construction of a double circuit transmission line of 220 kV with a total length of 61.30 km, with galvanized type towers and ACAR conductors (Aluminum conductors).

The EIA also evaluates the construction of 02 substations Pampa de Pongo and Sombrerillo, power transformers 220/33kV - 100MVA capacity and 220/23kV - 50MVA capacity respectively.

According to directorial resolution Nº365-2014-MEM/DGAAE given on Nov 20th, 2014, the EIA study for the power transmission system was approved meeting the technical requirements for the Peruvian Ministry of Energy and Mines and the environmental local regulations.

Source: Peruvian Ministry of Energy and Mines

Geological and geotechnical modelling as well as resources and supervision of drilling.

Source: BISA

The EIA covers specifications that will allow built port facilities which will let piling of iron ore as well as the construction of a dock to ship ore into ships that will transport mineral to international markets.

In addition to marine and land civil works, the port terminal will have mechanical handling equipment ore, ie rotopolas in the stockyards, conveyor belts and Charger boat (ship loader).

Source: Jinzhao Mining Peru S.A

SRK Consulting executed the the preliminary economic assessment report finding that the Pampa de Pongo Project is an economically robust project that warrants further exploration and study.

Drilling and magnetic surveys infer the presence of a large, massive magnetite mineralized Central Zone that is conducive to underground bulk mining. The metallurgy test work done on the Central Zone mineralization confirmed the production of pilot-scale direct reduction pellets with low levels of deleterious elements.

SRK Consulting also completed the structural report “Evaluation of the Structural Geology of the Pampa de Pongo Fe Project, Peru" in June 2008.

Source: SEC Fillings