Field trip to Chile a success

A recent 17- day field trip to Chile hosted by the Geological Association of Canada has allowed Canadian explorationists the opportunity to make comparisons of Chilean copper and gold deposits to those found in the Canadian Cordillera. Some 19 mine-properties were visited by about 40 participants of the tour which included representatives from major mining companies, geological consultants and government geologists.

The deposits visited ranged from porphyry copper-molybdenum, epithermal gold-silver, gold mantos, silver, iron, copper-silver, nitrate-iodine and even a lapis luzuli operation. Copper projects were of special interest as Chile is the world’s largest producer and exporter of the red metal.

Tour participants were pleased to discover that the mining sector is highly regarded in Chile as it contributes nearly 90% of the state’s income in foreign exchange, with copper accounting for about half this amount.

Tom Schroeter, senior regional geologist of the Geological Survey Branch of British Columbia, said one of the most striking contrasts between Canadian and Chilean copper mines is grade.

In Chile, grades average an impressive 1.4% copper, decreasing to 1% with cutoffs of 0.5-0.75% copper, largely because of oxidation and secondary enrichment. In Canada the average grade is 0.45% and decreasing, although current exploration is focused on deposits where gold values can add to overall project economics.

Chilean copper projects also leave Canadian operations in the dust with respect to reserves. For example, the state’s (and the world’s) largest producer, Chuquicamata, has sufficient reserves for 100 years, in comparison to British Columbia’s Highland Valley Copper which has about 30 years of reserves remaining.

On average, Canadian operating costs per pound of copper are about double that of most Chilean operations. But according to Giles Peatfield, a consulting geologist, operating costs may likely increase in Chile as stricter environmental regulations are put in place over the next decade.

Peatfield said he expects Chilean operations will spend considerable funds to clean up and improve tailings disposal systems and to modernize and upgrade the state’s numerous copper smelters.

Tour participants also visited the newly developing Maricunga epithermal gold camp where a number of bulk-tonnage gold mining operations are being brought on stream, many by Canadian companies.

In contrast to epithermal camps in the Cordillera which generally are not well exposed, some Chilean projects were found to present excellent exposures (both horizontal and vertical) of epithermal systems.

Both Schroeter and Peatfield agreed that Chile provides good exploration potential and investment opportunities, once the cultural differences are understood and taken into account.

But both warned that land tenure in Chile is “abominable,” with overstaking commonplace and lawyers playing a key role in disputes. Eskay Creek and Hemlo notwithstanding, Schroeter insists Canada has a “much better” system.