Technical Due Diligence of Manganese Properties – Santa Rosa, Peru



Geovale not only works with well-established companies in their respective domains, it helps aspiring new entrants and junior entities to properly evaluate the targeted mining property.

We have recently concluded a technical due diligence of manganese properties in the mineral rich country of Peru. The properties were located at around 4200 m elevation (MSL) in the District of Santa Rosa, Department of Puno. The field due diligence was carried out in 4 contiguous exploration and mining concessions, totaling around 8 sq. km.

Geovale undertook the following activities in the project –

  • Geological assessment of the manganese mineralisation in the project area and correlation with the nearby manganese mines, if any.
  • Assessment of the mineability and processability of the manganese prospects.
  • Review of the logistics, infrastructure, environment and social elements of the project.
  • Review of the mineral concession documents.
  • Surface sampling from the project area.
  • Recommend on the viability of the project for next stage.

The field work was followed by a Desktop study which included data collation of the previous exploration in the area and study of the geology, geomorphology and mineralisation in the nearby areas to develop an understanding on the mineralisation system.

Geovale carried out the detailed assessment of the geology, mineralisation and recorded information from mineability and carried out a High level Resource estimation. The team reviewed the mineral processing parameters and the logistics and infrastructure elements of the project.

We also carried out a high level financial model based on limited information to make a rough measurement of profitability of the project considering capex requirement, operating cost, processing cost, transportation expenses and future projection of manganese ore price of comparable grade.

We found that the manganese is mainly in oxide form, pyrolusite and psilomelane, found as thin veins (average 2cm to 10cms) within the volcanic rocks. These veins are exposed in discrete pattern, with a regional strike of NNE-SSW. Evidence of silicate manganese mineral was also recorded.

The vein type mineralisation within the Andesitic rocks has an upside resource potential, with a proper exploration program. The terrain and logistics impose a challenge in terms of mining. It was suggested to the client to do a pilot scale operation along with bench scale metallurgical test to understand the recovery and grade dilution of manganese.