Rio Alto Mining Limited RIOAF

AND I WAS RIGHT!!

[digingdeep]

Amazing the lack of transparency regarding PHASE II and the tailings dam location.  The PR is incorrect, incomplete and unclear when saying that none of the infraestructure of PHASE II is affected by the new oxides reserves,  and there is no need to review the general layout of PHASE II. The PR does not mention the tailings dam location.

Of course the expansion of the oxide mine until 2019 affects the tailings dam LOCATION for PHASE II!!! as RIO already said that will use the Calaorco open pit for tailings dam. BUT AGAIN the PR intentionally ommit this.

The PR extends the Oxide mine life beyond 2019.

So if RIO has no location for the tailings dam for PHASE II, it will have to purchase land from the local peasants, and a new Environmental Impact Assesment  and approval process has to be done as the new area and location of the tailing dam is not considered in the EIA approved, so workshops and previous consultation process with the local comunities has to be done, which is another scenario for the company. At this time, the land could cost several millions and RIO could receive opposition from local peasants to put the tailings in a new area and close to farming areas.

So I have two interpretations regarding PHASE II: 

1.  THE PHASE II will start after 2019 and when Oxides are depleted and RIO can use the open pit for tailings; so there is no need to buy more land and a EIA process approval; and the PHASE II is suspended for a long time;

2.  RIO has to purchase more lands for tailing dam location next to the current facilities and outside of the boundaries of the current EIA approved, which means that RIO will have to prepare a new EIA for new approval proccess, do workshops and a previous consultation process with peasants and spend several millions in that process; 

In any case, in my opinion, again this PR is incomplete and contradictory, and does not clearly states any mention to the tailing dam location and how it affects the oxide mine and the PHASE II, which as I said it is affected.  

So it is not right that the layout of the PHASE II IS NOT AFFECTED. RIO has to review the tailing dam location issue and the cost of doing it. 

Read carefully the PR:

 The results of the recent drilling program demonstrate that a large amount of oxide brecciated sandstone mineralization (the main mineral type at La Arena) lies outside the 2014 Reserve Pit. The results are very encouraging and indicate the potential to increase oxide gold resources and reserves and the possibility of extending mine life beyond 2019.
 
Phase II Update
 
Good progress is being made in respect to the completion of the feasibility study for the Phase II copper/gold project at La Arena. On January 6, 2014, the Company announced that it had received formal notification from the Ministry of Energy and Mines of Peru that approval had been given for modifications to its Environmental Impact Study (EIA) for the La Arena Project Gold Oxide Mine. This EIA modification allows Rio Alto to apply for permits for a future Phase II open pit sulphide mine, construct an 18,000 tonne per day copper/gold concentrator, expand the current waste dump facilities to accommodate sulphide waste and to use the Calaorco Pit for tailings deposition once open pit oxide reserves are exhausted. However, the recent increase in the size of the adjacent gold oxide deposit and possible expansion of the oxide resources and reserves as a consequence of the ongoing drill program, has meant that the general layout of the Phase II infrastructure needs to be revised. It is important that none of the Phase II infrastructure, such as process plant, conveying systems, stockpiles and waste dumps are impeding the possible future expansion of the oxide mine and its associated infrastructure. This revision of the general layout has meant that the completion of the feasibility study will be delayed until later in the year. Current estimates for timing are sometime in Q4, 2014.

[brucepower]

You're the only peasant you ignorant a$$hole. Who do you really think you are.