Additional source of revenue established
Altiplano Metals (TSXV APN / WKN A2JNFG) operates the El Penon processing plant in Chile, which is currently processing stockpiles (copper and iron mineralized material) that will soon be supplemented with material from the nearby historic Santa Beatriz iron, copper and gold mine. The processing produces a copper-gold as well as an iron concentrate. Altiplano has now found a buyer for the latter!
The company has just announced that it has concluded an off-take agreement with a private Chilean company. This company intends to purchase the iron material from the El Penon plant, which is located 30 kilometers south of the city of La Serena.
High-quality product especially for the Chilean market
According to Altiplano CEO Alastair McIntyre, this has opened up an additional source of revenue to supplement the income from the sale of copper-gold concentrate. It has paid off, Mr. McIntyre continued, to focus on producing a high-quality product that is primarily intended for use in the local Chilean market. According to Mr. McIntyre, sales from this revenue stream should be sufficient to support a significant portion of the company’s overhead costs.
According to Altiplano, the capacity of the plant is 1,800 tons of the product per month, based on a 40% magnetite content of the processed mineralized material. This is typical of iron oxide copper-gold vein structures, it added. As the company continued, the iron oxide produced at El Penon has between 65 and 71% iron content. And as we have already reported, 2,500 tons of this iron oxide product are already stored at the plant site.
We consider it positive that the iron oxide produced at El Penon has now also found a buyer – and apparently covers a significant portion of the overhead (G&A). At the same time, the company continues to supply the copper-gold concentrate produced to Ocean Partners Chile.
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