The Cerro Bayo project, situated in the Asyen area of southern Chile, began its operations in 1996. However, as of October 2022, it was put on hold and placed under care and maintenance.
In the duration of that specific time frame, it was reported that the mine had produced in excess of 45 million ounces (moz) of silver and 650,000oz of gold.
The two principal districts of the Cerro Bayo project are separated by a distance of 4 kilometers and are easily distinguishable from each other. These districts are the Cerro Bayo and Laguna Verde mining districts.
The Cerro Bayo project encompasses a flotation plant that is capable of processing 500,000 tonnes per annum, along with comprehensive mining infrastructure, a cache of preexisting mineral resources, and a sizable package of mining claims that spans over 300 square kilometers.
The Cerro Bayo project boasts A$150 million worth of infrastructure
According to Mitre Mining, the Cerro Bayo project boasts an impressive A$150 million worth of infrastructure on site, which will facilitate the exploration process and enable a low-cost restart of the mine.
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According to Ray Shorrocks, executive director of Mitre Mining, the acquisition of Cerro Bayo presents a rare opportunity for the company to make a significant impact in the industry. The acquisition not only includes a substantial resource but also offers immense potential for rapid resource expansion. Additionally, the existing plant and infrastructure provide the option for near-term production. This acquisition is poised to be a game-changer for Mitre Mining.
The worth of the infrastructure alone is estimated to be over $150 million, indicating the enormous investment that has been made in the area. Moreover, there is a wealth of known mineralization in the vicinity, which is expected to facilitate swift resource expansion and unlock significant potential at the district level.
The acquisition is anticipated to be finalized in early 2024, pending the fulfillment of certain conditions.
In recent news, Mitre has entered into a formal agreement to acquire the Los Domos silver-gold project, which is located in close proximity to the Cerro Bayo mine. This acquisition is being made from Equus Mining and its subsidiary Equus Patagonia, of which they own a 75% stake.
Mitre Mining has announced its intentions to conduct a two-stage placement in order to generate A$8.3 million.
Mitre has earmarked the profits from the transaction to not only fund their latest acquisition but also to establish a prompt resource expansion initiative in the vicinity of their mining operation. The program will be aimed at boosting the amount of high-quality silver and gold resources at their disposal.
