tamaya expands in south america

Comments from Miningnews....

Paul Garvey
Thursday, 5 July 2007

COPPER miner Tamaya Resources has further expanded its footprint in South America, picking up the Chilean assets of AIM-listed Latitude Resources in an all-scrip deal worth $A24.7 million.


Tamaya, which operates the Cinabrio copper mine and Punitaqui plant in Chile's Coastal Ranges, said the acquisition double the company's copper resource base.

The pick of the five Coastal Range projects in the deal is Filipina Grande, which is home to a JORC-compliant sulphide resource of 12 million tonnes grading 1.28% copper and 0.34 grams per tonne gold.

The project also has a small oxide resource of 1.9Mt at 0.83% copper.

Tamaya said a recent review of the project by SRK Consulting found the resource could support an underground mine producing 30,000 tonnes per annum copper and 22,000 ounces pa gold.

Such an operation would more than treble Tamaya's forecast output out of Chile. The company's Punitaqui plant is being expanded to support annual production of 12-15,000tpa copper.

The SRK report calculated an NPV over Filipina Grande of $US88.7 million at $US1.40 per pound copper and $US500/oz gold.

The company said it would look to double the resource base within the 11,300-hectare project as a minimum requirement for a production decision.

Tamaya described the Santa Dominga project, which it will also pick up in the transaction, as highly promising. The project has potential for a 50Mt resource base.

Tamaya chairman Hugh Callaghan said the company was particularly excited about Filipina Grande.

"Priority is to be given to fast-tracking Filipina Grande to production and generating a JORC resource for Santa Dominga," Callaghan said.

Tamaya will issue Latitude with 85 million shares and 15 million options, with the options to come in three equal portions priced at 30c, 40c and 50c.

Earlier this year, a takeover bid by Tamaya for gold developer Iberian Resources ended with Tamaya holding 86.21% of Iberian's issued capital. Iberian's key asset is the Lichkvaz Tey gold project in Armenia.

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