Antofagasta (LON:ANTO), a UK-based copper mining company, is set to launch a significant new exploration phase at its Cachorro project in northern Chile, a move that highlights the company’s ongoing commitment to expanding its copper portfolio in the region. The project, which is strategically located between Antofagasta’s Centinela and Antucoya operations, is positioned to benefit from synergies with existing infrastructure, including processing facilities, should the project move forward.
The company has submitted an environmental impact statement (DIA) to Chilean regulators, marking the official start of the exploration phase. The approval of this environmental impact statement is a crucial step before Antofagasta can proceed with its planned investment. Pending regulatory approval, Antofagasta plans to invest $220 million over a seven-year period. This investment will fund the drilling of more than 700 holes and the construction of a horizontal tunnel designed to facilitate underground exploration, with a target depth of 300 meters.
The next stage of exploration at Cachorro will focus heavily on improving geological models and resource categorization. Antofagasta aims to enhance its understanding of the mineral resource at the site, which could help refine the potential scale of the operation and provide more detailed information for future development. In addition to drilling, baseline environmental monitoring will be conducted to assess the potential impact of the project. These environmental assessments will include biodiversity protection initiatives, groundwater studies, and archaeological surveys to ensure the project adheres to local and national regulatory standards.
Furthermore, the permitting process will involve commitments from Antofagasta to support the local economy. This includes plans to create jobs within the community and engage regional suppliers, which is seen as a key aspect of the project’s development. These efforts are intended to foster local support and align the project with the broader economic interests of the surrounding area.
The Cachorro project itself was first discovered in 2017, and its potential has been recognized since its initial findings. The site currently hosts a mineral resource of 255 million tonnes with a grade of 1.26% copper and a silver content of 4 grams per tonne. These figures place Cachorro among the most important manto-type copper deposits in Chile’s coastal belt, a region renowned for its mineral wealth. Antofagasta has emphasized that the size and grade of the resource make Cachorro a significant asset in its broader portfolio of mining operations in the country.
This exploration push comes at a time when the global copper market is facing increasing demand, driven by factors such as the transition to renewable energy and the growing use of electric vehicles. As one of the world’s leading copper producers, Antofagasta’s developments in Chile are seen as crucial not only for the company’s growth but also for the future of global copper supply.
While the approval of the environmental impact statement is still pending, the proposed exploration phase represents a significant step forward for Antofagasta in its effort to increase production and strengthen its position in the global copper market. The company’s plans, if approved, are poised to unlock further potential at Cachorro, contributing to its ongoing projects in Chile and supporting the broader efforts to meet rising demand for copper.
The outcome of the environmental review process will determine whether these ambitious plans will come to fruition, but for now, Antofagasta’s investment in the future of the Cachorro project signals its confidence in the long-term potential of copper mining in northern Chile.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
The post Antofagasta (LON:ANTO) Plans $220 Million Exploration Push at Chile’s Cachorro Copper Project appeared first on MiningFeeds.
