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Lima-based Peru Copper plans to complete a feasibility study by mid-2007 at its Toromocho copper project in central Peru, company CEO and president Charles Preble told BNamericas.
The company expects to award a contract to conduct the feasibility study over the next six weeks with preparation of the study taking from 8-12 months, said Preble.
"The project is going well. We are about to embark on the feasibility study, we are well-advanced on social issues and are advancing on environmental issues," said Preble.
But the Peru Copper CEO declined to comment on the process launched in November 2005 and handled by UBS Investment Bank to "evaluate strategic alternatives" for the development of Toromocho.
"It is being managed by UBS. I don't have anything to add to the press release [of June 7]," said Preble.
Peru Copper announced on June 7 that it has received a "frivolous" bid by Peru's Southern Copper and that it expected to receive "other indications of interest" by the end of the day.
Peru Copper formally started a process to evaluate a JV for Toromocho, or outright purchase of the project or the company, as the deposit in central Peru's Junin department it too large for the junior to handle alone.
A February 2006 pre-feasibility study outlined capital costs of US$1.52bn to build an open pit mine producing 272,788t/y of copper in concentrate and cathodes at cash costs of US$0.514/lb and 5,387t/y of molybdenum over 21 years.
The project would involve the relocation of the town of Morococho with a population of 3,400 and Peru Copper has already identified potential new sites, said Preble.
"There is good acceptance by a majority of the population for the relocation," said Preble, adding that it was an issue that needed to be "cultivated and worked on" with the people whose lives would be affected.
Toromocho is in a traditional mining area which does not host agriculture but there is limited grazing, the Peru Copper CEO said.