Altiplano Metals Inc. reported on the progress at the El Peñón processing facility located approximately 15 kms from the Farellon copper-gold mine, 35 kms south of La Serena, Chile. As part of the ongoing optimization process at the processing facility, several refinements focusing on the milling and flotation processes have been completed for the crushing, milling, and flotation circuits. These adjustments were designed to improve the overall milling process efficiencies and resulted in enhanced productivity, together with increased production of concentrates while completing ongoing adjustments.

This work included: Gearing replacement, transmission alignment, and mechanical adjustments for the two ball mills to optimize spin rate and particle grinding. New instrumentation for the pulp pump systems, and conveyors which will improve the flow rates to the mills and milled product to the flotation systems. An upgraded hydro-cyclones classification system was installed to improve the flow of crushed material to the flotation cells. Speed adjustments to the agitation reducers were completed in the flotation process to promote optimal recovery of copper/gold.

The inaugural production of copper/gold and iron concentrates were generated from the fully integrated and operational plant. The enclosure of plant facility and warehouse building was completed, mainly for noise control. The completion of the recent work provides the benefit of improving concentrate production and the efficient integration of the copper-gold concentrate circuit with the iron separation and filter press systems. The iron separation and filter circuits are designed to reduce tailings output (producing iron concentrate) and water consumption (through recycling).

Power supply continues from generators while the company waits on the final connection from the electricity supplier. The first copper/gold and iron concentrates produced from the facility are currently stored at the site and will be shipped for sale. Processing of the lower grade stockpiles used for the start-up process at the mil site continue and are producing concentrates with average grades of 24% Cu and above, and gold at 1.5 grams/tonne on average, as well as iron ranging from 68% to 71% Fe.

Shipment and processing of new mined high-grade material will be used to improve output, concentrate grade, and returns as the mill begins full operational capacity beyond start up. In the meantime, the Company manages its cash flow needs from selling copper-gold material to third part processors as concentrate production reaches maximum output.