Bear Creek Mining evaluates strategy to optimize the Corani project in Peru.

Bear Creek Mining has taken a significant step in the evolution of its Corani project, located in the Puno region of Peru, by announcing that it is evaluating ways to "significantly" reduce capital intensity before starting production at this silver mine. The Canadian company, which has been working on this project in recent years, has confirmed that it is analyzing various opportunities that could not only increase production over the mine's lifetime but also enhance its profitability. In a context where mining faces constant economic and environmental challenges, Bear Creek's initiative to focus on the development of silver resources and the recovery of oxidized material rich in silver found near the surface is a strategic move. This approach aims to optimize available resources and facilitate quicker access to certain materials that might otherwise go unnoticed or be considered waste. The mining development proposal includes extracting the oxides in an initial phase, which would allow Bear Creek not only to start production more quickly but also to reduce associated costs. Subsequently, the plan includes the development and extraction of silver-lead-zinc sulfide resources, contributing to a more sustainable operation with healthier cash flow. Andrés Franco, Vice President and General Manager of Bear Creek, has highlighted the importance of updating permits and reconsidering the budget, which could lead to an increase of 20% in the initial investment of $579 million in Corani, in the worst-case scenario. This financial challenge underscores the complexity of carrying out mining projects today, where market fluctuations and environmental regulations are determining factors. The Preliminary Economic Assessment (PEA) that the mining company plans to conduct will be crucial in determining the viability of the new plan. The report is expected to reveal the possibility of implementing a processing plant with a capacity of 5,000 tons per day, focusing on treating the oxidized material extracted in the initial phase. Additionally, a simplified flowchart will be explored that could be more efficient compared to the original sulfide approach. The strategy of extracting the oxides first is not just an economic issue; it could also extend the mine's lifespan. If the PEA results are favorable, Bear Creek could see a significant reduction in the capital intensity required, which in turn would facilitate a more flexible and less costly operation. The 2019 Corani report estimated that the mine contains approximately 39 million ounces of silver in potentially leachable materials, along with a considerable amount of lead and zinc. However, these oxides had not been considered within the proven and probable reserves, highlighting the importance of Bear Creek's new strategy in reviewing its mineral resources. The company has also indicated that extracting the oxide resources, if their economic viability is proven, would accelerate access to the underlying transition and sulfide mineralization. This would not only be an advancement in operational efficiency but could also reduce the amount of waste rock required for future exploitation stages. At a time when the mining industry is at a turning point towards more sustainable and responsible practices, Bear Creek's commitment to an approach that minimizes capital costs and optimizes available resources is an example of how innovation and adaptation can be fundamental to success in the mining sector. As the date for scheduled announcements approaches in late 2024, the attention of investors and stakeholders in the industry will focus on the results of this assessment. The push for oxide extraction could not only make a difference in the economics of the Corani project but also set a precedent for future mining developments in the region and beyond.