Bear Creek Mining Corporation has selected Graña y Montero Group-owned company GMI SA Ingenieros Consultores for Phase I of detailed engineering work at the Corani silver-lead-zinc project in Peru.
GMI will work with Bear Creek to complete the Corani engineering design, which is a pre-requisite to gain the construction permit.
The Corani Phase 1 detailed engineering work will be funded by proceeds from July's Short Form Prospectus financing.
Bear Creek president and CEO Andrew Swarthout said: “We are very pleased to have the opportunity to partner with G&M, one of the largest and most respected Peruvian engineering and construction firms.
“G&M along with its subsidiaries has both the breadth and depth of experience to deliver exceptional service in not only engineering design but also in permitting, construction of mining operations, bulk earth moving and contract mining, as demonstrated by their track record of very successful construction and operation outcomes at the Cerro Verde, Las Bambas, La Arena, Shauhuindo and Constancia mining projects in Peru.
“We look forward to working with G&M's highly qualified team as we complete this important milestone in the development of the Corani project; one of the largest undeveloped silver mines in the world.”
Phase I of detailed engineering work is scheduled to start from mid-November and expected to be completed within six months, costing nearly $3.2m.
It will establish final processing flow sheets, equipment lists, mine sequencing optimisation and updated CapEx and OpEx cost estimates for the Corani project based on a projected 2018 construction start-up timeframe. It will be used to support the company's application for a construction permit.
The firm will also engage a project finance consultant, which it will work with to develop a financing structure for the Corani project.
Phase I detailed engineering is expected to be complete by the end of second quarter of 2017, with the construction permit and project financing to be in-place by mid to late-2017 so that a construction decision can be made before the end of next year.
Image: A mining operation. Photo: courtesy of Ondando/Wikipedia.