The Santo Domingo Project, owned 70% by Capstone and 30% by Korea Resources Corporation (KORES), the Korean state-owned resource acquisition enterprise, is a large-scale iron oxide-copper-gold development project. The Santo Domingo Project is located 50 kilometres west of Codelco's El Salvador copper mine, and 130 kilometres north northeast of Copiapů in Region III, Chile, near the town of Diego de Almagro. Elevation at the site ranges from 1,000 to 1,280 metres above sea level, with relatively gentle topographic relief.
The project is expected to be fully-funded through a long-term strategic partnership with KORES who purchased 30% of the project from Capstone and acquired an 11% ownership in Capstone. In addition, KORES will arrange for debt financing for 65% of the capital costs of the project. Capstone anticipates that it will develop the Santo Domingo project for production once a power purchase agreement is signed, with construction potentially commencing as early as 2015.
|Key Facts (August 2011 Pre-Feasibility Study)|
|Location||Region III, Chile|
|By-products||Magnetite iron, gold|
|Mine life||18 years|
|Proposed mining type||Open pit|
|Planned operating throughput (tonnes per day)||63,500|
|Average annual production||144 M lbs Cu, 4.1 Mt Fe, 15,000 oz Au|
|Total Reserves (000's Tonnes)||418,000 (70% Capstone: 292,600)|
|Grade (Cu %)||0.32|
|Contained metal (M lbs Cu)||2,930 (70% Capstone: 2,051)|
Additional information on Capstone's Mineral Reserves and Mineral Resources is available here.