UPDATE 2-Buenaventura, Gold Fields make major Peru gold find

Tue May 11, 2010 4:28pm EDT

Related Topics

 * Miners estimate resource at 5.6 mln oz gold equivalent
 * They see pre-feasibility studies commencing in July 2010
 * Gold Fields holds 51 pct, Buenaventura 49 pct in JV
 (Adds Buenaventura CFO comments, shares closing up,
byline)
 By Teresa Cespedes
 LIMA, May 11 (Reuters) - Buenaventura (BVN.LM) (BVN.N) and
Gold Fields Limited GFJ.J have found a major gold deposit in
their Chucapaca project in southern Peru, near the border with
Chile, the companies said on Tuesday.
 The Canahuire deposit, which is inside the Chucapaca
project area, has a mineral resource estimate of 5.6 million
gold equivalent ounces, Buenaventura said in a media release.
 South African miner Gold Fields has a 51 percent stake in
the Chucapaca joint venture, while Peru precious metals miner
Buenaventura holds the remaining 49 percent.
 In a joint statement issued on Tuesday the companies said
the "very promising gold discovery" represents a very important
growth opportunity for Gold Fields and Buenaventura.
 Shares in Buenaventura at the Lima stock exchange gained
7.6 percent in Tuesday's session.
 "We've got to carry out environmental impact and
feasibility studies before we start looking at details
regarding how much we need to invest to start production,"
Buenaventura Chief Financial Officer Carlos Galvez told
Reuters.
 Galvez said the site's estimated mineral resources could
increase, as the joint venture company is carrying out further
exploration in adjacent areas.
 "We hope the deposit is bigger than what we've got at the
moment, and when we carry out the scoping study we'll have a
better idea of the size of the project, (projected) output
capacity, whether we need to do an open pit mine or how we do
it," he said.
 The statement said the companies could commence
pre-feasibility studies in July 2010.
 Canahuire also holds significant resources of silver and
copper, the statement said.
 Buenaventura CEO Roque Benavides told Reuters last week
that the company expects to produce 1.1 million ounces of gold
and 17 million ounces of silver this year. [ID:nN06137920]
 Buenaventura had a net profit of $593.6 million in 2009, a
287 percent increase from a year earlier.
 Gold Fields is the world's fourth largest gold miner.
 (Additional reporting by Ursula Scollo; Writing by Eduardo
Garcia; Editing by Lisa Shumaker)


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