LEAD AND ZINC IN PERU: RESOURCES AND SUPPLY TRENDS · Programa de Metalogenia Lima, Setiembre 2015 . Content •Lead and zinc metallogenic belts •Global and local statiscal data

LEAD AND ZINC IN PERU: RESOURCES AND SUPPLY TRENDS

Jorge ACOSTA ALE, Alexander SANTISTEBAN & Dina HUANACUNI

INSTITUTO GEOLÓGICO MINERO Y METALÚRGICO Dirección de Recursos Minerales y Energéticos

Programa de Metalogenia

Lima, Setiembre 2015

Content

• Lead and zinc metallogenic belts

• Global and local statiscal data

• Local production by metallogenic belt and ore mineral deposit type

• National historical production

• Future Pb-Zn producers and supply trend

• Total Pb-Zn reserves and resources

• Conclusions

Lead and Zinc Belts

Main Lead & Zinc Belts in Peru

Metallogenic belts Miocene epithermal, skarn, replacement & polimetallic vein deposits

Lower Cretaceous– Paleocene VMS Cu-Zn-Au

Colquijirca Santa Luisa Cerro de Pasco

C° Lindo

San Cristobal-Volcan

Catalina Huanca

Milpo

Animón

San Cristobal-Bateas

Antamina

María teresa

Projects

Source: Jorge ACOSTA et al. 2015. MAIN METALLOGENIC BELTS AND SUPPLY TREND OF LEAD AND ZINC IN PERU. Pro Explo 2015.

Source: Modified from Mapa Metalogenético del Perú. INGEMMET, Acosta et al, 2014 - Ministerio de Energía y Minas. Dirección de Energía de Minas.

Tambogrande

Bongara

La Granja

Corani

< 7

7-10

10-15

> 15

Tons of Fine Lead X 1000

Mines

< 50

50-100

100-200

> 200

Tons of Fine Zinc X 1000

Mines Projects

Other non Lead & Zinc Belts in Peru

C° Lindo Catalina Huanca


Antamina

Bongará

Accha

Constancia

Corani

Santa Ana

San Vicente

Miocene epithermal Au-Ag deposits

Eocene-Miocene MVT deposits

Eocene-Oligocene porphyry –skarn Cu-Mo-Au

Metallogenic belts


La Granja

Tambogrande


Projects

< 7

7-10

10-15

> 15

Tons of Fine Lead X 1000

Mines

< 50

50-100

100-200

> 200

Tons of Fine Zinc X 1000

Mines Projects


Lead

3.4 3.4

3.0 2.9 3.0

3.4

4.9

0.19 0.19 0.21 0.26

0.30 0.32 0.26

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

1980-1984 1985-1989 1990-1994 1995-1999 2000-2004 2005-2009 2010-2014

Mill

ion

To

ns

of

Fin

e L

ead

Average each 5 years

OTHERS CHINA

AUSTRALIA USA

PERU MEXICO

RUSSIA INDIA

BOLIVIA CANADA

SOUTH AFRICA MOROCCO

World Lead Production 1980-2014

Source: Survey-USGS-US Geological, International Lead and Zinc Study Group-ILZSG.


Source: ILZSG

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

0

100

200

300

400

500

600

700

800

% of World Total ‘000 tonnes

Latin America Lead Mine Supply 2005-2014

Source: Don Smale. 2nd EU - Latin America Dialogue on Raw Materials. Cartagena, Colombia, 22-23 September 2015

Breakdown of Lead Mine Supply 2014

Argentina 4%

Bolivia 14%

Brazil 2%

Guatemal 2%

Honduras 2%

Mexico 36%

Peru 40%

Source: ILZSG

Europe 9%

Africa 2%

Latin America

14%

North America

7%

Asia 54%

Oceania 14%

Latin America World


Lead Mines in Peru - 2014

Source: Ministerio de Energía y Minas. Dirección de Energía de Minas. Anuario Minero 2014.

< 7

7-10

10-15

> 15

Annual Production Tons of Fine Lead

X 1000

Mines

278,000 MT Ma Teresa

Colquijirca

Santa Luisa

Huarón

Uchucchacua Cerro de Pasco

Casapalca

Raura

C° Lindo

Americana

Ticlio

Mallay


Catalina Huanca

Atacocha Milpo

Yauricocha

Animón Iscaycruz Santander

Huachocolpa


Antamina


Peruvian Lead Production by

Metallogenic belt

0

50

100

150

200

250

300

350

400

Tho

usa

nd

To

ns

of

Fin

e L

ead

Miocene skarn, replacement & polimetallic vein deposits belt

Miocene epithermal Au-Ag belt

Lower Cretacic - Paleocene VMS belt


Peruvian Lead Production by Deposit Type

0

50

100

150

200

250

300

350

400

Tho

usa

nd

To

ns

of

Fin

e L

ead

Ephitermal, skarn, replacement & polimetallic vein deposits

Skarn

IS & LS Epithermal

MVT

VMS


Historic Cumulative Lead Production in Peru

Total Production in Peru

~14 MMT (100%) From Miocene belt

13.5 MMT (97%)

From Lower Cretacic-Paleocene belt 0.3 MMT (2%)

Other no Pb-Zn belts 0.1 MMT (1%)

0.3 MMT 2%

13.5 MMT 97%



Ma Teresa

Colquijirca

Santa Luisa

Huarón

Uchucchacua Cerro de Pasco

Casapalca

Raura

C° Lindo

Americana

Ticlio

Mallay


Catalina Huanca

Atacocha Milpo

Yauricocha

Animón Iscaycruz Unidad Santander

Huachocolpa


Antamina

< 7

7-10

10-15

> 15

Production 2014 Tons of Fine Lead

X 1000

Mines



Lead Resources and Reserves in the Main Pb-Zn Belts in Peru

Total reported resources in Peru

~22 MMT (100%) From Miocene skarn, replacement and veins belt

15 MMT (70%) From Lower Cretacic-Paleocene belt

0.4 MMT (2%) From Miocene Epithermal Au-Ag belt

5 MMT (21%) Other non & Pb belts

1.5 MMT (7%)

0.4 MMT 2%

15 MMT 70%

5 MMT 21%

Mines Projects Millions tons of

Fine Lead

< 1

1-10

> 10

Source: Modified from Mapa Metalogenético del Perú. INGEMMET. Acosta et aI, 2014 - Memorias de compañías mineras.





Main Lead Deposits with Resources and Reserves in Peru

(> 500,000 Fine tons)


Fine Lead

< 1

1-10

> 10

Colquijirca

Huarón

Uchucchacua

Cerro de Pasco

Raura

C° Lindo


Atacocha

Yauricocha

Animón

Recuperada

Caylloma

Antamina Pachapaqui

Contonga

10.72

2.63

1.83

1.21 1.18

0.39 0.36 0.35 0.30 0.28 0.24 0.23 0.22 0.22 0.22 0.21 0.16 0.15 0.12 0.09 0.08 0.08 0.07 0.07 0.07 0.06 0.05

0

2

4

6

8

10

12

Mill

ion

To

ns

of

Fin

e o

f Le

ad

Bongara Zn-Pb-Ag

Aija Pb-Zn-Ag-Cu Hilarión Zn-Pb-Ag

Pashpap Cu-Mo-Ag-Pb-Zn

Pallca Pb-Zn-Ag

El Dorado Cu-Pb-Zn-Ag-Au

Sinchao Cu-Au-Ag-Zn-Pb-Mo

Accha Zn-Ag-Pb

Shalipayco Zn-Pb-Ag Invicta

Au-Ag-Cu-Pb-Zn

Tomapampa Zn-Pb-Cu

Potrobayo Pb-Zn-Cu

Cerro Colorado Pb-Zn-Cu

Corani Pb-Zn-Ag-Cu

Santa Ana Ag-Zn-Pb

Ataspaca Cu-Ag-Pb-Zn

Constancia Cu-Mo-Au-Ag-Pb



World Lead Reserves 2014

Resources: >2000 million metric tonnes (MMT)

Reserve Base 170 MMT

Mine Production 5.0 MMT

Reserves 87 MMT

Sources: USGS, ILZSG

Not to scale

contained lead metal


Australia 40%

China 16%

USA 6%

Peru 8%

Mexico 6%

India 3%

Russia 11%

Other 10%

World Lead Reserves 2014 Breakdown

Source: USGS

• Despite increased

consumption of lead

produced from ore in

recent years, increases

in reserves have grown

more, and there is

more lead available to

the world than at any

other time in the past.


Future Producers and Supply Trend

of Lead

40

27

22 20

2.5

19

17 17

13 12 12 12 11 10

8

10 9 8 8 7 7 7 6 6 6 6

0

5

10

15

20

25

30

35

40

45

Ton

s o

f Fi

ne

Le

ad x

10

00

Future Lead Producers in Peru

< 10

20-10

> 20

Annual Production Million Tons of Fine Lead

Projects Extension

Accha 2017

Ma Teresa

Colquijirca 2015

Santa Luisa

Huarón

Uchucchacua 2015 Cerro de Pasco

Casapalca

Raura

C° Lindo 2016

Americana

Ticlio

Mallay


Catalina Huanca

Atacocha Milpo

Yauricocha

Animón Iscaycruz Unidad Santander

Huachocolpa


Antamina



Peruvian Lead Production by

Metallogenic belt

0

50

100

150

200

250

300

350

400

Tho

usa

nd

To

ns

of

Fin

e L

ead

Miocene epithermal, skarn, replacement & polimetallic vein deposits belt


Eoceno-Oligocene porphyry-skarn belt



Peruvian Lead Production by Deposit Type

0

50

100

150

200

250

300

350

400

Tho

usa

nd

To

ns

of

Fin

e L

ead

Epithermal, skarn, replacement & polimetallic vein deposits

Skarn

IS & LS Epithermal

MVT

VMS230

+ Colquijirca + Uchuchacua

297

300

340

+ Cerro Lindo

Accha

345

278

Forecast Actual


Zinc

World Zinc Production 1980-2014

0.5 0.6 0.6

0.8

1.2

1.4 1.3

6.4

7.1 7.1 7.4

9.1

10.9

13.0

0

2

4

6

8

10

12

14

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

1980-1984 1985-1989 1990-1994 1995-1999 2000-2004 2005-2009 2010-2014

Mill

ion

To

ns

of

Fin

e Z

inc

Average each 5 year

OTHERS CHINA

AUSTRALIA PERU

USA INDIA

MEXICO CANADA

BOLIVIA KAZAKHSTAN

Source: Survey-USGS-US Geological, International Lead and Zinc Study Group-ILZSG.


Source: ILZSG

15%

17%

19%

21%

23%

25%

0

500

1000

1500

2000

2500

3000

% of World Total ‘000 tonnes

Latin America Zinc Mine Supply 2005-2014


Breakdown of Zinc Mine Supply 2014

Argentina 1%

Bolivia 18%

Brazil 6%

Chile 2%

Honduras 1%

Mexico 24%

Peru 48%

Source: ILZSG

Europe 8%

Africa 2%

Latin America

21%

North America

9%

Asia 48%

Oceania 12%

Latin America World


Zinc Mines in Peru - 2014

< 50

50-100

100-200

> 200

Annual Production Tons of Fine Zinc

X 1000

Mines

1.3 MMT

Antamina

Santa Luisa

Huarón

Cerro de Pasco

Casapalca

Raura

C° Lindo Americana

Ticlio Andaychagua

Iscaycruz

Catalina Huanca

Atacocha Milpo

Yauricocha

Animón

Maria Teresa Unidad Santander Carahuacra


Colquijirca

266

174

106 85

75 66

47 39 36 35 29 28 27 26 24 23 21 18 17 16

0

50

100

150

200

250

300

Ton

s o

f Fi

ne

Zin

c x

10

00



Peruvian Zinc Production by

Metallogenic belt

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Mill

ion

To

ns

of

Fin

e z

inc





Peruvian Zinc Production by Deposit Type

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Mill

ion

To

ns

of

Fin

e z

inc


Skarn

IS & LS Epithermal

MVT

VMS


Historic Cumulative Zinc Production in Peru

Total Production in Peru

~41 MMT (100%) From Miocene belt

38.4 MMT (94%)

From Lower Cretacic-Paleocene belt 2 MMT ( 5%)

Other no Pb-Zn belts 0.4 MMT ( 1%)

2 MMT 5%

38.4 MMT 94%

Antamina

Santa Luisa

Huarón

Cerro de Pasco

Casapalca

Raura

C° Lindo Americana

Ticlio Andaychagua

Iscaycruz

Catalina Huanca

Atacocha Milpo

Yauricocha

Animón



Colquijirca

< 50

50-100

100-200

> 200

Production 2014 Tons of Fine Zinc

X 1000

Mines





Zinc Resources and Reserves in the Main Pb-Zn Belts in Peru



4.6 MMT 9%

30 MMT 58%

13.6 MMT 26%

Total reported resources in Peru

52 MMT (100%) From Miocene skarn, replacement and veins belt

30 MMT (58%) From Lower Cretacic-Paleocene belt

4.6 MMT (9%) From Miocene Epithermal Au-Ag belt

13.6 MMT (26%) Other non & Zn belts

3.8 MMT (7%)


Fine Lead

< 1

1-10

> 10




Main Zinc Deposits with Resources and Reserves in Peru

(200,000 Fine tons)

11.1

8.8

3.5 3.3 3.0

2.2 2.1 2.0 1.7 1.5 1.4 1.4 1.4

0.8 0.8 0.7 0.6 0.6 0.6 0.5 0.5 0.4 0.4 0.3 0.2 0.2 0.2

0

2

4

6

8

10

12

Mill

ion

To

ns

of

Fin

e o

f Zi

nc


Fine Zinc

< 1

1-10

> 10

Bongará Zn-Pb-Ag

Aija Pb-Zn-Ag-Cu Hilarión Zn-Pb-Ag

Pashpap Cu-Mo-Ag-Pb-Zn

Ballena Cu-Au-Fe-Zn

Pallca Pb-Zn-Ag

El Dorado Cu-Pb-Zn-Ag-Au

Sinchao Cu-Au-Ag-Zn-Pb-Mo

La Granja Cu-Mo-Zn

Accha Zn-Ag-Pb

Shalipayco Zn-Pb-Ag

Azulcocha Zn-Au

Antares Cu-Au-Zn

Invicta Au-Ag-Cu-Pb-Zn

Tomapampa Zn-Pb-Cu Potrobayo Pb-Zn-Cu

Cerro Colorado Pb-Zn-Cu Tambogrande Cu-Zn-Au-Ag

Corani Pb-Zn-Ag-Cu

Santa Ana Ag-Zn-Pb

Ataspaca Cu-Ag-Pb-Zn

Shouxin Zn

Antamina

Cerro de Pasco

C° Lindo

Catalina Huanca

Milpo

Yauricocha

Animón

Maria Teresa


Colquijirca

Source: Memorias de compañías mineras.


World Zinc Reserves 2014

Resources: about 1900 million tonnes (Mt)

Reserve Base 480 Mt

Mine Production

13.3 Mt

Reserves 230 Mt

Sources: USGS, ILZSG

Not to scale

contained zinc metal


World Zinc Reserves 2014 Breakdown

Source: USGS

Australia 27%

China 19%

Peru 13%

Kazakhstan 4%

Mexico 7%

USA 4%

Canada 3%

Other 23%

• Despite increased

consumption of zinc

produced from ore in

recent years, increases

in reserves have grown

more, and there is

more zinc available to

the world than at any

other time in the past.


Future Producers and Supply Trend

of Zinc

Future Zinc Producers in Peru

< 50

50-100

> 100

Annual Production Million Tons of Fine Zinc

Projects Extension

266

202

174

106

85 75

66 60 47 46

7

39 36 35 30 29 28 27 26 24 23 21 18 17 16 11 8

0

50

100

150

200

250

300

Ton

s o

f Fi

ne

Zin

c x

10

00


Uchucchacua 2015

Antamina

Santa Luisa

Huarón

Cerro de Pasco

Casapalca

Raura

C° Lindo 2016

Americana

Ticlio Andaychagua

Iscaycruz

Catalina Huanca

Atacocha Milpo

Yauricocha

Animón



Colquijirca 2015

Accha 2017

Shouxin 2015


Peruvian Zinc Production by

Metallogenic belt

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Mill

ion

To

ns

of

Fin

e z

inc



Eoceno-Oligocene porphyry-skarn belt



Peruvian Zinc Production by Deposit Type

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Mill

ion

To

ns

of

Fin

e z

inc


Skarn

IS & LS Epithermal

MVT

VMS

Other deposits + Colquijirca + Uchuchacua

1.39

1.42 1.48

+ Cerro Lindo Minera Shouxin

Accha

1.31

Forecast Actual

1.26

1.60

1.37

1.20


Conclusions

• Pb-Zn productions come from Miocene polimetallic and Lower Cretaceous VMS belt.

• The future of Pb-Zinc endowment are located mainly in the Miocene polimetallic and Miocene Epithermal Au-Ag (by-product) deposits belts.

• In the Pb-Zn belts the tonnage and grade of Pb vary from 5 to 2,800 MMT and from 0.04 to 10 %Pb.

• The tonnage and grade of Zn vary from 9 to 6,000 MMT and from 0.1 to 14 %Zn in the Pb-Zn belts .


Lead & Zinc Belts in Peru: Grades & Tons



Eocene-Miocene MVT deposits

Eocene-Oligocene porphyry –skarn Cu-Mo-Au

2,815 MMT @ 0.05-5.3 % Pb 6,036 MMT @ 0.11-10 %Zn

94 MMT @ 0.22-3.0 %Pb 267 MMT @ 0.8-10 %Zn

5 MMT @ 0.5-0.6 %Pb 18 MMT @ 8-14%Zn

472 MMT @ 0.1-5.2 %Pb 476 MMT @ 0.1-8.6 %Zn

500 MMT @ 0.04-0.46 %Pb 9 MMT @ 6.1-9.0 %Zn


Mines Projects Millions tons of Fine Lead

< 1

1-10

> 10


Total reservers & resources reported in Peru

22 MMT Pb 52 MMT Zn


Conclusions

• National Pb-Zn productions in 2014 were 278,000 and 1’320,000 fine metric tons (FMT) respectively. Reserves and resources of Pb-Zn are 22 and 52 fine MMT. Theresfore, productions are ensured by 73 and 39 years respectively (considering by-products).

• Extensions of Colquijirca and Uchuchacua and starting operation of Accha and Minera Shouxin on 2017 will increase the national production of Pb and Zinc to peak of 340,000 and 1’480,000 FMT respectively.


Gracias

LEAD AND ZINC IN PERU: RESOURCES AND SUPPLY TRENDS

Jorge ACOSTA ALE, Alexander SANTISTEBAN & Dina HUANACUNI

INSTITUTO GEOLÓGICO MINERO Y METALÚRGICO Dirección de Recursos Minerales y Energéticos

Programa de Metalogenia

Lima, Setiembre 2015

Documents

LEAD AND ZINC IN PERU: RESOURCES AND SUPPLY TRENDS · Programa de Metalogenia Lima, Setiembre 2015 . Content •Lead and zinc metallogenic belts •Global and local statiscal data