Issue link: http://resourceworld.uberflip.com/i/1099276
A P R I L / M A Y 2 0 1 9 www.resourceworld.com 43 MINING FIDELITY MINERALS CORP. [FMN- TSXV; S5GM-FSE; MNYCL-SSE] hopes to avoid such a scenario by developing a large portfolio of mineral projects in min- ing friendly Peru – several of which have small-scale, near term production potential which, in the aggregate, could represent a significant amount of low-cost commercial production within a few years. The company has acquired a 45 tpd CIP plant at its Cerro Dorado Project located in the prolific mining district of Caraveli, Arequipa, 700 km south of Lima. There is a full service 45-person camp with accommo - dation, catering, office and storage facilities on site which will also support construction activities for the already permitted expan- sion up to 115 tpd. The installation of a new 60 tpd flotation circuit is expected to add to efficiencies in sulphide gold recovery, fur- ther improving profitability. In addition, a small mining permit is in place to expand the plant to 350 tpd. The Cerro Dorado plant provides Fidelity with a platform to process high-grade ore from its own mine sources in addition to potentially offering processing services for small privately-owned mines in the area. The plant rests adjacent to the fully permitted Rey Salomon gold mine which had recorded historic sales of 1,675 tonnes grading 11.80 g/t gold (since 2012) and produced commercially as recently as May 2016. An adjoining 1,172 hectares of claims could provide base feedstock for the plant. The Rey Salomon Project, which has seen extensive historic underground exploration and development, displays styles of mineralization characteristic of orogenic or intrusive-related mesothermal gold veins. Historic exploration and devel - opment have identified 58 veins on the property – of which only five have seen development – with four principle veins having extensive underground workings. The developed veins are open at depth and along strike. Exploration to date has mainly been for veins in the granodiorites. However, the subvolcanic andesites in the northwest area of the property have seen little work, whilst extensive local occur - rences of intrusive-related gold veins in the subvolcanic andesites have been documented at the Mina Calpa site 8 km northeast of the property and where his- torical production exceeds 500,000 oz of gold, with substantial additional regional resources yet to be exploited. Extensive regional mineralization is presently being exploited by typically small-scale mining operations. There are no competing operational mills in the val - ley where Cerro Dorado is located, and much of the regional production has gold recovery characteristics compatible with Fidelity's plant flow sheet. Ian Graham, CEO, confirms, "The idea is to have a small company with solid gold revenue from which we can pursue our other aims and goals which are essentially growth-focused goals. We intend to be a platform for deal flow, for taking Fidelity Mining to underwrite resource appraisal projects with small-scale Peruvian gold production by David Duval DEVELOPING MINERAL PROJECTS ON A SMALL-SCALE, INCREMENTAL BASIS MAKES A LOT OF SENSE THESE DAYS GIVEN THE FACT THAT FINANCING LARGER SCALE PRODUCTION UNDER CURRENT MAR- KET CONDITIONS CAN EASILY DILUTE THE VALUE OF JUST ABOUT ANY COMMERCIAL SUCCESS STORY.