Jul 29 2015
RioSol SAC LLC and Compania Minera Rio Sol SAC today announced for sale or development a significant limestone aggregate and lime claim in southern Peru, located in close proximity to the Interoceanic Highway connecting Peru and Brazil.
The claim is unique in both size and proximity to nearby markets and large infrastructure projects, both in South America and potentially for export or a combination. Large aggregate claims are particularly important for the concrete and aggregate markets, providing key materials for construction of all types in a rapidly growing region.
The Company acquired the Montana Gael claim in 2014 at an original size of 6 square kilometers, which is being expanded to 8 square kilometers. Both the mining and agricultural ministries have granted approvals for the project.
Independent geologic testing indicates the claim, with both limestone and lime located at the surface, has proven and probable reserves in excess of 880 million metric tonnes, and inferred potential greater than 1.5 billion metric tons, with higher amounts likely through continued testing and drilling in 2015-16. Geochemical results show limestone tested above 93 percent concentration, with lime testing at greater than 55 percent concentration.
Montana Gael is located in the southeast of Peru in the Puno department, with close proximity to key infrastructure projects, including the planned Chinchero International Airport, located west of the project near Cusco, as well as for serving local cities, such as Larimayo. Hydroelectric power potential is available to provide low-cost power for the project and for potential regional electricity needs. RioSol and partner companies will be conducting further evaluation and geologic testing as the project is being offered for sale, partnership or earn-in opportunity.
At regional production levels, the claim at its present size and quality could support a 100-year mine life. With higher production levels, estimates range from 30-50 years or longer. The project is ideally positioned for production into the fast-growing Latin American markets.
RioSol recently announced new claims in Peru, including the Capacsaya rare earth claim, with the highest concentration of light- and heavy rare earth levels in the country, as well as a significant platinum group metal claim. All are being actively developed for sale, joint development or earn-in opportunities.
Uses of Aggregates and Lime
Limestone is used directly on a large scale, worldwide basis, in a number of industries. Some uses of aggregates and lime include:
- Rock aggregate used in construction;
- As a feedstock for cement manufacturing;
- In the mining industry for pollution control; and,
- In the use of lime as a chemical agent in the copper mining industry, where Peru is the second-largest producer of copper in the world.