Acquisition:
2022 / 08 / 15
Agreement:
Royalty
Terms:
2.0% NSR
Chapada is an open pit copper-gold mine located 270 kilometres northwest of Brasília in Goiás state, Brazil. The mine reached commercial production in 2007 and is an open pit truck and shovel operation, with ore being treated through a flotation plant with capacity of 24 Mt per annum. The Chapada mine plan has three open pit mining areas in close proximity including Corpo and Corpo Sul, which are currently being mined, and the Suruca deposit that holds future development potential.
As part of Lundin’s ongoing exploration program aimed at increasing Mineral Resource estimation at Chapada, drilling was initiated at the Saúva deposit in 2021.
In February 2024, Lundin released updated Mineral Reserve and Mineral Resource estimates effective December 31, 2023. The Saúva deposit, located approximately 15 kilometres from the Chapada plant, had a 25% increase in Mineral Resources when compared to the estimate effective December 31, 2022. Additional drilling during 2023 tested step-out anomalies along the broader Saúva-Formiga trend, which contributed to the increase in Mineral Resources. The deposit remains open in all directions.
The open pit Indicated Resource at the Saúva deposit increased to an estimated 721,000 tonnes of copper contained in 244.7 Mt grading 0.29% copper and 0.17 g/t gold (December 31, 2023, effective date, NSR cut-off value of $7.80 per tonne). The Saúva deposit, which is located within Sandstorm’s stream area of interest, contains higher grades than existing Measured and Indicated Resources at Chapada which total 1.06 Bt grading 0.23% copper and 0.12 g/t gold (NSR cut-off grade of $5.80 per tonne).
Recent Activity
January 2023
In 2022, copper production at Chapada was 45,739 t and gold production was 68,000 ounces, both of which achieved guidance.
