Mining Group Limited has provided an update on the progress being made at the Panga mine, which is part of the El Roble copper project in Chile.
According to the ASX announcement by Mining Group Limited, the company has abandoned the idea of commencing open-pit mining operation at Panga after it conducted a detailed test-work to assess the viability of such operation, and instead opted for development of an undergoing operation at the mine to expose the interpreted depth extensions of the previously mined high-grade copper zones.
Initial work at the project consists of the installation of along-strike development drives within the mineralized vein on two levels, with minor rehabilitation and waste development on the existing underground mine in order to safely access below the historic mined out zones.
“We are pleased with the progress being made at Panga underground. Now we have the vein exposed in two headings, working towards our target zones below the historic stopes in the coming weeks. Along the way we are still stockpiling mineralized material which will help pay for the development when sold later this month,” Mining Group Managing Director, Mr Zeff Reeves said.
“The commencement of this work is another small milestone for us and the development of the El Roble Project. The company continues to move forward with achieving its goal and executing the strategy of small-scale mining to fund longer term growth.”
Last year Mining Group signed a production lease agreement over the historic Panga Mine, which is located in the iron oxide copper gold Coastal Cordillera Belt of Chile, approximately 30 kilometres from the Chilean port of Caldera.
The terms of the production agreement allow Mining Group to exploit up to 1,000 tonnes per month of copper-bearing material. The company has submitted an application to the Chilean national mining regulatory to be granted a permit to exploit up to 5,000 tonnes per month, and is now awaiting confirmation of the permit.