- AJEDREZ ALLUVIAL GOLD PROJECT is one of most important alluvial gold projects in Argentina due to the quality of the ore and the estimate amount of its reserves.
- Given the characteristics of this deposit, it is possible to implement the concentration and extraction of gold by conventional mechanical methods, at a very low cost, without the use of chemical products that are harmful to the environment.
- The Project is located in the well-known Gold District of Sierra de La Rinconada, in the Northwest of the Province of Jujuy, and 300 km away from the Capital of the Province, the City of San Salvador de Jujuy. FIGURA 1.
- The Project area covers approximately 60,000 hectares and is located 3,900 meters above sea level. However, due to the almost lack of snow, the exploration and exploitation activities can be carried out all through the year. FIGURA 2.
- The Exploration Environmental Impact Report (EIR) of the Project was unanimously agreed and approved by the Provincial Environmental Management Unit of Jujuy, (Unidad de Gestión Ambiental Provincial – U.G.A.M.P.). This entity is formed by ten (10) state organizations of the Province of Jujuy, the University of Jujuy, the Mining Workers Central Union and representatives of the Native Communities from the Project region.
- On May 7th 2014, the Mining Director of the Province of Jujuy granted the approval of the EIR, thus authorizing the exploration activities for the Ajedrez Project.
- An intense exploration program was run during 2014 and early 2015 in order to confirm the gold resources of the Project and thus, define its economic feasibility. FIGURA 5.
- The main gold reserves of the Project were defined in the river terraces and floodplains. The average ore grade within these exploration targets is 0.7 g/m3. Areas with more than 4 g/m3 gold were also identified. FIGURA 3 y FIGURA 4.
- The results of the exploration program were very encouraging: the existence of at least 100,000 troy ounces (around 3,000 kg) of gold in the 10% explored area of the mining claims was estimated. Thus, EASA decided to move forward into the exploitation phase of the Project.
- Gold is expected to be produced by means of a mobile concentration plant within the project premises. This plant mainly consists on centrifuge gravitational concentrators that allow a high recovery of gold, in particular within the very fine granulometry of the enriched sediment layers.
- The current design for the Exploitation Stage foresees the production of eight (8) to twelve (12) kilograms of gold per month at the time the ore concentration equipment is functioning under regime. Provided this rate of production is maintained, the Project could have a mine life of almost thirty (30) years.
- The Exploitation Environmental Impact Report (EIR) of the Project was again unanimously agreed and approved by the Provincial Environmental Management Unit of Jujuy, (Unidad de Gestión Ambiental Provincial – U.G.A.M.P.). On December 9th 2015, the Mining Directorate of the Province of Jujuy granted the approval of the EIR, thus authorizing the exploitation activities for the Ajedrez Project.
- ESPIRITU DE LOS ANDES S.A. owns 100% of the mining rights of the Ajedrez Project. The Company signed at the end of year 2013 a Cooperation Agreement with J.E.M.S.E. (State Company for Energy and Mining of the Province of Jujuy) looking for development and growth, not only for the own Company but also for the economy and welfare of the local Communities and of the areas of influence where the Project is located.
- ESPIRITU DE LOS ANDES S.A. has engaged during the last four years an intense task of socialization with the local Communities that inhabit the Project area, reaching a very positive and important Company-Community relationship.
- The realization of the Project can bring about considerable regional benefits that could contribute to incorporating artisanal or informal mining to the production process posed by ESPIRITU DE LOS ANDES S.A., therefore integrating it to the formal economic circuit.
- The construction and operation of a Processing Plant in the Project area could also be the link in the chain that involves the commercialization between individual or community artisanal panners and the business, thus allowing greater economic profit to the individual projects when added to a business structure.
- ESPIRITU DE LOS ANDES S.A. plans to start producing ecological gold on the second semester of 2016.
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