Arimetco Int’l invests in Bolivian zinc mine

Arimetco International (TSE) has reached an agreement to acquire a 52% interest in the Andacaba zinc-lead-silver mine near the city of Potosi, Bolivia.

The current owners of the mine have recently taken delivery of the equipment required to expand operations from 50 tons to 230 tons per day. Arimetco, which will assume management of the joint venture on Feb. 1, has agreed to fund installation of the equipment and explore and develop a number of nearby veins.

The partners plan to increase production to 400 tons per day by early 1993. Andacaba hosts proven and probable reserves of 400,000 tons grading 10% zinc, 4% lead and 10 oz. silver per ton on a fully diluted basis, and another two million tons in the possible category.

Arimetco will invest US$2 million in the project over the next two years. In return, the copper producer will receive 75% of the cash flow from the date of its first investment.

The mine property covers 1,348 hectares, including several massive sulphide veins and a significant tin anomaly yet to be thoroughly explored. Joe Merz, former general manger of the El Mochito mine in Honduras, will be general manager of the joint venture.