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Editorial - MinerAndina

CVRD starts drilling in Bayovar

Monday, September 12, 2005

MinerAndina Compañía Minera Miski Mayo SAC, Peruvian subsidiary of the Brazilian giant of metals Companhia Vale Do Rio Doce, CVRD, Rio de Janeiro, would be starting next September a diamond drilling campaign at its Bayovar phosphate project, located in the Bayovar N°2 concession, as soon as the Ministry of Energy and Mines approves the Environmental Evaluation - Category C of the project.

Bayovar is located 120 km to the South of Piura city, at the eastern part of the microbasin of Chorrillos, Sechura district and province in Piura region.

In this way, Miski Mayo will be starting its activities to complete the feasibility study of Bayovar, which waited long years before tender. On March 15, and after several insolvent attempts to privatize, CVRD adjudicated as sole bidder the grant of Bayovar by offering the construction of a treatment plant with installed capacity of 3.3 million tones per year and the payment of 3% royalty over the sale of the phosphoric rock –MA, N°362, 2005.

The exploration campaign consists on the drilling of 104 holes with Long Year 44 (LY 44) drilling machines which requires conventional platforms and vehicle access, according to the Environmental Evaluation Study filed by the company to the Ministry of Energy and Mines. The plain topography of Bayovar allows access to the drilling points for the platforms; this is the reason why the company would not need to build access roads.

Miski Mayo considers there is no risk of generating impacts on the hydric resource due to the fact that there are neither superficial nor underground water bodies in the project. However, the company will need 62.7 m3 of water daily, which will be acquired from Illescas, administered by the Regional Government. On the other hand, the air quality would be lightly affected during the drilling campaign, due to the increase of particulate matter and noise.

The campaign will last 90 days with 10 additional days to complete the closure and remediation works, for which Miski Mayo will hire 40 workers in total between August and November.

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