Friday, 15th July 2005 (2838 views)

The African mining company Gold Fields is looking for potential deposits in Chile's northern Third Region.

However, in order to start mining, Gold Fields must prove the area holds reserves in excess of two million ounces of gold.

The exploration executive for the company's South American operations, Mario Alfaro, told South African website Finance24 that drilling was imminent.

"We have found elements that could allow us to predict or think with optimism that there could be a gold mine below, so we are going to drill near-term," he said.

But if the required gold reserves could not be found, Mr Alfaro explained, "we will look for someone interested in developing smaller projects".

Chilean gold and copper deposits have enjoyed increased interest from corporate investors over the past two years because of rising metals prices.

A Chilean mine would be Gold Fields' second in South America, having already secured a gold and copper project called Cerro Corona in northern Peru.

However, the project is still waiting for final approval from the local community, which is holding a vote next week.

If approved, Gold Fields hopes Cerro Corona will begin operating in 2007, with an estimated annual output of 150,000 ounces of gold and 62 million pounds of copper.

 

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