Shougang output grows in Peru; Milpo adds zinc capacity

Hierro Peru's output has grown 2.18% in May over the same month last year, from 432,969 tonnes to 442,396 tonnes, Steel Business Briefing learns from Peruvian mining ministry.

However, strikes that occurred during the first four months this year put a brake on growth, and the Chinese-owned miner produced 2.12m tonnes in January-May this year, an increase of just 1.15% compared to the same period of 2006.

On the other hand, the strong galvanised steel market during the first half this year has allowed Peru to increase its zinc production. During the first five months this year, the country has produced 591,532 tonnes of zinc concentrates – a 25% more than the same period last year.

Peru's fourth largest miner, , has commissioned its project – with investments of US$110m – which will add 146,000 t/y to the company's zinc concentrates capacity.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: July 31, 2007

Buenaventura profits take a 90% beating on dehedging

Peruvian miner (NYSE: ) saw its profits plummet 90% year-on-year in the second quarter to US$14.5mn due to the unwinding of its hedge book, the company said in its quarterly results statement.

By ridding itself of its forward sale contracts to take advantage of high spot prices, 's Q2 profit took a US$64.7mn hit. Profits for the first half of this year registered at US$51.1mn or 81% behind the year-ago period.

Revenues, however, went up 9% in 2Q07 to US$188mn versus US$173mn in 2Q06 and to US$352mn in the first half, or 17% more than in the first half of last year.

Ebitda - taking into account the company's 43.7% stake in the Yanacocha gold mine and 18.5% of the Cerro Verde mine, both in Peru - fell 20% with respect to the year-ago period in the second quarter to US$207mn and dropped 9% to US$400mn in the first half.

Excluding the two equity interests, Ebitda rose 31% to US$111mn, Buenaventura said.


Buenaventura produced 98,177oz of gold in 2Q07, up 1% compared to 97,250oz in 2Q06, and 192,525oz in the first half of 2007 versus 190,394oz year-on-year, also a 1% rise.

However including Yanacocha, where grades have been falling notably in recent quarters, the company's total gold output registered at 230,257oz in Q2 compared to 327,630oz year-on-year, a 30% drop. First semester output also fell 25% to 507,137oz of gold.

Buenaventura's silver production amounted to 3.54Moz in 2Q07 versus 3.85Moz in 2Q06 and to 7.24Moz in 1H07 compared to 7.16Moz in 1H06.

Copper production was up at 11,930t in April-June compared to 4,366t year-on-year while zinc rose slightly at 8,977t compared to 7,753t in 2Q06. Lead dropped to 4,945t last quarter compared to 5,133t in the year-earlier period.


The Orcopampa mine registered gold output of 65,587oz in 2Q07 with a 3% increase over the year-earlier period while cash costs rose 16% to US$163/oz due mostly to drilling expenses.

Uchucchacua's silver production fell 11% to 2.17Moz in the second quarter mainly due to a 10-day strike in May and lower recovery rates. Cash costs rose 34% to US$4.31/oz on lower output and higher reagent consumption at the mine's new cyanidation plant.

Antapite produced 34% less gold at 18,395oz in 2Q07 due to a sharp drop in grades. Cash costs rose 69% to US$360/oz on lower output and exploration costs.

Buenaventura's stake in the Colquijirca mine yielded 20,382t of zinc in the second quarter, a 26% increase over the year-earlier period. Cash costs went down 58% to US$259/t due to higher throughput.

Yanacocha's total output, of which Buenaventura receives 43.7%, was 302,590oz gold in the second quarter or 60% less than in 2Q06. Cash costs skyrocketed 127% to US$436/oz due to higher waste mined and lower production. US miner Newmont (NYSE: NEM) controls Yanacocha with 51.3%.

Cerro Verde's total output catapulted 173% to 64,487t copper in this year's second quarter.

All operations are in Peru.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: July 30, 2007 (21:14)

Topy Top and Textimax lead textile exports in Peru

Peruvian companies Topy Top, Textimax and Devanlay Peru are the largest exporters of textiles in the country. According to ComexPeru (Sociedad de Comercio Exterior) from January to June this year, Topy Top exported USD 55.7 million while Textimax exported USD 41.6 million in the period. BIS - Business Information Systems

Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: July 31, 2007


Claro Peru, Nextel del Peru win mobile concessions in Peru

Claro Peru and digital trunking operator Nextel del Peru have been awarded mobile concession licences from ProInversion, Peru's state agency for promoting private investment. Claro Peru is a unit of America Movil. Nextel del Peru is owned by US mobile holding firm NII Holdings. Claro was awarded the Band B licence, equating to the 835-845MHz, 880-890MHz, 846.5-849MHz and 891.5-894MHz spectrum blocks, for USD 22.22 million, which was USD 20,000 above the base price. Nextel del Peru won the Bands D and E, for USD 27 million, or USD 1.5 million above the base price. Band D covers the 1,865-1,870MHz and 1,945-1,950MHz blocks, and Band E band covers 1,882.5-1,895MHz and 1,962.5-1,975Mhz. Nextel was pre-qualified for Band B, but made no offer. With Band B, the winning bidder will need to have 500,000 lines in service outside Lima and Callao, and must cover 200 districts which have no service by the operator. The operator of Bands D and E must have 500,000 lines in service in total.

Publication: Telecom.paper News
Provider: Telecom.paper
Date: July 30, 2007


Peru Pisco, Wine Exports At $668,000 H1 2007

The exports of and wine from Peru stood at $668,000 (489,000 euro) in the first half of 2007, soaring 123 pct year-on-year, the country's association of exporters Adex said on July 26, 2007.

The exports of stood at $364,107 (266,550 euro), while the exports of wine totalled $303,911 (222,500 euro).

The United States was the leading buyer of and wine from Peru for January to June 2007.

The sales of pisco were mainly directed to the United States, Chile, Colombia, Argentina, Spain, France, Germany, Japan, Canada and Mexico.

Peruvian wine exports were mainly directed to the United States, Guatemala, France, Canada, Japan and Switzerland.

Pisco is a unique sort of brandy which is highly popular in Chile and Peru. It is made from a special variety of white muscat grapes, which grow in the region of Pisco, western Peru, and in the Elqui Valley, central Chile.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: July 27, 2007

Southern Copper Q2 net profit up 64% to $726m

Corp said its net profit jumped 65 percent year-on-year in the quarter ended June 30 on higher copper prices and increased output.

Income rose to $726 million while sales increased by $549.8 million to $1,826.5 million, an increase of 43. percent, it said.

Copper production jumped 28.1 percent in the second quarter when the company produced 159,211 tonnes of copper.

Almost the entire increase came from the company`s open pit mines in Mexico.

Production in Peru slid 4,853 tonnes at its Toquepala operation on lower ore grades and mill recoveries.

Molybdenum production increased to 3,901 tonnes in the second quarter of 2007 from 2,313 tonnes in the second quarter of 2006.

The earnings were "attributable to the sustained price levels for most of our metals and equally as important, to an increase of more than 28 percent and 68 percent in copper and molybdenum mined production, respectively," said Southern Copper Corp chairman German Larrea in a statement.

Meanwhile, talks continued in Peru between the company and three of its biggest unions at the Toquepala, Cuajone and Ilo smelter and refinery, after the unions agreed to suspend strikes to resume negotiations.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: July 27, 2007

Telefonica del Peru Reports 527,000 Broadband Clients End-H1 2007

The Peruvian unit of Spanish telecommunications company Telefonica, Telefonica del Peru, reported 527,000 broadband clients at the end of the first half of 2007, up 20 pct year-on-year, Telefonica del Peru said on July 25, 2007.

Telefonica del Peru provides broadband Internet access service under the brand Speedy.

In the first six months of 2007 the highest rise was registered in the number of residential broadband clients, up by 29 pct. Residential users concentrate 82 pct of Peruvian broadband Internet market. Corporate users, including public booths, and state institutions accounted for 17 pct of the broadband Internet users in the country.

Currently, the capital of Lima represents 70 pct of the total Internet market, Telefonica del Peru's premium segment director, Rainer Spitzer, said.

In the provinces of Tacna and Arequipa, southern Peru, Piura, northwestern Peru, and La Libertad, western Peru, Telefonica del Peru registered a rise in broadband Internet users by an average of 6.0 pct year-on-year in the first half of 2007.

The company targets more than one million Speedy users for 2011. To achieve the target, the company will rely on technology innovation, constant update of products, and formation of strategic alliances with leading brands in the sector, Spitzer pointed out.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: July 27, 2007


Doe Run Peru building second sulfuric acid plant

Doe Run Peru has begun construction of a $29-million lead circuit sulfuric acid plant at its La Oroya smelter in Peru, the company said Wednesday.

The plant, which will help to reduce sulfur dioxide emissions from the smelter`s chimney, is being built as part of an agreement with the Peruvian government to improve the region`s air quality.

The new La Oroya acid plant is slated to start running by September 2008.

"[The plant`s] operation will involve the completion of a series of complementary projects we are carrying out concurrently," Juan Carlos Huyhua, Doe Run Peru`s president and general manager, said. "Those projects include completing updates to the effluents treatment plant, the electric substation that will power the acid plant, and in particular, the construction of a warehouse and dispatch terminal for the sulfuric acid that is produced as the sulfur dioxide is drawn out of the plant."

A similar plant has already been built at the Oroya zinc circuit, and the company intends on building a third sulfuric acid plant for the site`s copper circuit by October 2009.

All three projects will cost more than $244 million, well beyond the $107.5 million the company committed to spending in its agreement with the Peruvian government in 1997, the company said.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: July 26, 2007

Telefónica posts US$19.8mn in net profit in Q2

Peru's incumbent fixed line carrier del Perú (TdP) posted net profits of 63mn soles (US$19.8mn) in the second quarter of 2007, a 23.5% increase on the 51mn soles seen in 2Q06, attributed mainly to improved operating profit, the company said in a statement. Operating profit was 179mn soles, up 11.9% from 160mn soles in 2Q06.

TdP, a unit of Spain's (NYSE: TEF), saw operating revenues of 1.11bn soles, flat compared to the same quarter a year ago.

Revenues from local fixed telephony services totaled 391mn soles in the quarter, down 3.6% from 2Q06, while public and rural telephony services generated revenues of 167mn soles, down 25.4% year-on-year.

However, the internet segment saw Q2 revenues of 164mn soles, up 24.1% from the year-ago period. Pay TV services brought in 108mn soles, 25.1% more than 2Q06.

In the local fixed telephony segment, TdP ended the quarter with 2.4mn subscribers compared to 2.29mn at end-2Q06. Internet connections totaled 527,339 at end-Q2, up from 389,118 at the same time last year.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: July 25, 2007 (21:07)

Electro Sur Este H1 profit up 154% to US$2.13mn

Peruvian distributor saw net profit in the first half of 2007 jump 154% to 6.72mn soles (US$2.13mn) from 1H06, the company reported to securities regulator Conasev.

In the period, higher consumption, in particular from mining companies, helped net sales grow 8.2% to 58.6mn soles, with operating profit up 145% to 6.34mn soles.

Financial gains helped boost the bottom line.

concession covers 6,111km2 in the departments of Cuzco, Apurímac and Madre de Dios, and Sucre province in Ayacucho department.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: July 25, 2007 (21:07)

Peru: CVRD develops phosphate reserves in Bayovar

Mining major CVRD has informed President Alan Garcia of its plans to invest US$479mil to develop the phosphates production at Bayovar (Piura). The project designs a phosphate concentrates plant with capacity to process 3.3mil mtpy of ores to start up operations by 2010, and also a port at Sechura to flow away exports. The concession on the270mil m tons firs class phosphates reserves at Bayovar was adjudicated to CVRD on March 2005 and this project has been on inception since then.

Publication: SABI - Business News
Provider: South American Business Information
Date: July 26, 2007


Buenaventura contemplates $1bn project development portfolio

Peruvian gold miner has a project development portfolio that could see it invest $1 billion in six projects and joint ventures, president and chief executive Roque Benavides told MB.

Projects waiting for authorisation that will participate in include the $1.2 billion Minas Conga and $500 million Cerro Quillish projects in northern Cajamarca department led by Yanacocha, its joint venture with Newmont Gold.

Other projects include San Gregorio in Pasco department, Pilancones in Piura, La Zanja and Tantahuatay in Cajamarca. Buenaventura will contribute $1.09 billion of the $2.3 billion development cost of these projects.

Yanacocha, Peru`s largest gold producer in which owns a 43.65-percent stake, is expected to produce 1.6 million oz of gold this year and 1.8 million oz in 2008.

Production from Yanacocha has declined from over 3 million oz per year due to depletion of reserves, a fact which has helped Peru`s export earnings from copper overtake those from gold.

However, Benevides said there may be potential to increase production again in the future depending upon exploration results.

"We continue to explore as we have a very large land package and we believe there is still a lot of potential to find ore in the area. But if they are going to be the easy ounces like we have had in the past or higher cost ounces, we do not know," he said.

Buenaventura is forecast to produce about 500,000 oz of gold this year from its direct operations including 250,000 oz from Orcopampa in Arequipa department and 100,000 oz from Antapite in Huancavelica department.

"If we can improve on this we will," said Benavides.

Silver production will stay at about 16-17 million oz in 2007 and 2008 including the company`s equity share from the Yanacocha and Brocal companies, but with the bulk coming from its Uchucchacua mine in Lima department, while zinc production is forecast at 30,182 tonnes.

The Breapampa gold project, a joint venture with Newmont, is likely to be the next mine in production. Buenventura will acquire a 60-percent stake by investing $5 million and bringing the deposit into production, with output of 60,000-80,000 oz per year from the end of 2008.

The strategy of the company is to focus on gold and silver projects, but Benevides says the company will take advantage of any opportunities that present themselves.

"We are in mining to make money. We love to continue investing, we generate a lot of cash and we are looking for opportunities, although we think the best way to grow as a company is organic through exploration," he said.

Buenaventura will spend $18 million on exploration in Peru this year in 13 departments and has four projects at development stage and eight other prospects. Development projects are the Marcapunta copper and Pozo Rico silver projects, and Poracota and La Zanja are gold development projects.

"Pozo Rico is a continuation of the expansion of the Uchucchacua silver mine that we are trying to get into production as fast as we can. At Marcapunta we started production of 1,000 tpd at the mill this month to process copper ore. We are seeing how the metallurgy works," he said.

The company is trucking ore from Pozo Rico to its Uchucchacua mine for processing "but if the reserve base expands we may have to put a plant in", he said.

Development of La Zanja gold-silver project is being held up by permitting and local community issues, he said. The La Zanja exploration camp was burnt to the ground in November 2004.

The company is also looking to diversify internationally and is exploring for gold in Argentina, Brazil, and is open to opportunities in Chile and Mexico.

America Movil sees Peruvian subscribers rise to 4.36 mln

had 4.36 million mobile subscribers in Peru at end-June, up 75.5 percent from 2.48 million at end-June 2006. Net additions in Q2 were 496,000, up 82.6 percent vs Q2 2006. Revenue for Q2 was PEN 427 million, up 43.4 percent vs PEN 298 million in the year-earlier period. Driven by lower pricing, MOUs rose 22.8 percent annually. EBITDA was PEN 138 million, up 41.8 percent. EBITDA margin was 32.2 percent, vs 32.6 percent. ARPU fell 21.1 percent.

Publication: Telecom.paper News
Provider: Telecom.paper
Date: July 25, 2007

Votorantim to complete phase one of Cajamarquilla zinc refinery in September

Brazilian mining company Metais is spending $100 million to expand its zinc refinery in Lima department by 20 percent to 160,000 tpy of refined metal, commercial manager Savio Ce told MB.

The refinery currently produces 135,000 tpy of refined metal for consumption in Latin America, largely to be sold to producers of galvanized steel. The expansion is due to be completed in September and the plant will be at full production capacity in November, he said.

The expansion is part of Votorantim`s plans to boost total zinc production capacity to 700,000 tpy, which would make the company the world`s third-biggest zinc producer.

Cajarmarquilla will be expanded to an eventual 340,000 tpy within two years in a $300 million investment. Production at Tres Marias in Minas Gerais state will be expanded to 250,000 tpy from 170,000 tpy.

The expansion aims to benefit from increased zinc production in Peru - the world`s third largest producer - with output forecast to increase 6 percent over the 2.5 million tonnes of concentrates produced in 2006.

Votorantim owns 24.9 percent of Peruvian zinc miner Milpo.

Votorantim bought the Cajamarquilla refinery for $210 million from Canada`s Teck Cominco in 2004.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: July 25, 2007


Peru to double copper production within five years - minister

Peru aims to double copper production to 2 million tpy within five years, energy and mining minister Juan Valdivia told MB. This goal is made feasible by projects such as Xstrata Copper`s Las Bambas and Anglo American`s Michiquillay copper-gold-silver project in Cajamarca, he told MB on the sidelines of the opening of Milpo`s Cerro Lindo copper, lead and zinc mine in Ica. "Within five years it is very possible that we can double copper production," he said.

Peru produced 1.05 million fine tonnes of copper in 2006, a 3.9-percent increase compared with the 1.01 million fine tonnes produced in 2005.

The country`s president Alan Garcia had earlier said there was no reason Peru should not be as big a copper producer as its southern neighbour Chile, and said development of the mining industry is essential for the Andean country.

"Twenty percent of the world`s mineral resources are in Peru but only 10 percent of the country has been explored. Chile has fewer mineral resources than Peru and no polymetallic resources yet it produces 5 million tpy of copper," Garcia said. Chile produced 5.6 million tonnes of fine copper in 2006.

"We can develop many more mines. We could open 200 or 300 more mines in Peru due to world growth projections. We could replace Chile. What are we afraid of?" Garcia said. Garcia added that Peru now has to move towards making refined and semi-finished products to maximise the value it obtains from its mineral resources.

"This will be expensive but it will generate three to five time the number of jobs that mining generates. We have to pass to this important second stage," he said.
Valdivia said the government will maintain political and economic conditions to attract foreign investment in the mining sector, including continuing to address the social problems that have hindered some mining projects in recent years.

"We will maintain legal stability in the country so that there are guarantees for investors, and we will continue to work towards social responsibility to re-establish a better relationship between companies, the state and the communities," he said.

"Social issues are the main challenge the mining sector faces. We have overcome the financial and technical problems, now we have to work to establish good relations," he added.

"Sooner or later Peru will develop through mining, but only when it does not represent a conflict with other sectors of the country," said Garcia.
Although only 10 percent of the country has been explored, the government is not going to fund basic geological exploration, he added.

"That is something for the private sector," Garcia said. Valdivia said the ministry estimates that miners in Peru will pay royalties of 600 million soles ($190 million) and possibly up to 5.4 billion soles this year.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: July 23, 2007

Peru: Exalmar and Dordogne to buy Cormar

Dordogne Holdings Inc, the leading shareholder in Austral Group, and Pesquera Exalmar have reached a deal whereby they will acquire 100% of shares in another fishing group, Corporacion del Mar (Cormar). Dordogne of Norway has moved to keep up with Peruvian players such as Grupo Brescia (Tasa) and the family Dyer (Copeinca). In the recent past, Dordogne Holdings and Tasa allied in a bid to try to buy Corporacion Malla but the deal didn't come off. Cormar has four fishmeal and fish-oil plants in Paita, Casma, Callao and Tambo de Mora (Chincha) as well as seventeen boats that can store 350 cubic metres each. In the first third of 2007, Cormar exported fishmeal and fish-oil to the tune of US$8.414mil.

Publication: SABI - Business News
Provider: South American Business Information
Date: July 23, 2007

Peru: Cerro Lindo mine opened by Milpo

The Cerro Lindo mine starts up today in the Peruvian province of Chincha and will permit Compania Minera Milpo, owner of the operation, to double its production and assets. Over the last three years, Milpo has invested over US$150mil without recourse to a single bank loan, a fact that Abraham Chahuan, general director of the firm, is rightly proud of. Chahuan would like to see Peru refining metals and offering products that have been elaborated at least partially. Meanwhile, his own firm has been growing fast; its copper mine Chapi has been functioning for over a year now in Moquegua (after investment of US$35mil with Cerro Lindo costing US$115mil to open). Its next projects will be Pukaqaqa and Hilarion, the former 17 kilometres outside Huancavelica, the latter located in Ancash. Milpo is also looking to work in Colombia and Argentina.

Publication: SABI - Business News
Provider: South American Business Information
Date: July 23, 2007

Peru: Tasa acquires Epesca

Mario Brescia, the executive director of Tasa (Tecnologia de Alimentos), part of Grupo Brescia of Peru, has confirmed to Chilean press-men that Tasa has finalised a deal to buy fishing firm Epesca. The Peruvian world leader for fishmeal will be handing over US$85mil for Epesca. The latter is a part of Grupo Badinotti and Tasa is moving to grow its storage or bodega capacity to 2,800 cubic metres and to grow its fleet. Tasa should be able to add 30,000 m tons of fishmeal annually as a result of this purchase.

Publication: SABI - Business News
Provider: South American Business Information
Date: July 23, 2007


Milpo inaugurates Cerro Lindo Mine in Peru

Peruvian base metals miner Cia. Minera Milpo said Friday that it had inaugurated its Cerro Lindo copper, lead and zinc mine.

Cerro Lindo, located 175 kilometers (109 miles) south of the capital city of Lima, is expected to yield 146,000 tonnes of zinc concentrates, 39,500 tonnes of copper concentrates and 14,800 tonnes of lead concentrates per year, the company said.

Cerro Lindo holds more than 33 million tons of reserves.

Milpo is Peru`s fourth-largest zinc and lead producer and Cerro Lindo will double its annual production.

According to Ivo Ucovich, head of Milpo`s board of directors, the project required around $110 million in investment.

The company operates the El Porvenir Mine in Pasco in central Peru, the Chapi Mine in Moquegua in southern Peru and the Ivan Mine and refinery in Antofagasta, Chile.

In an interview with local press, Abraham Chahuan, chief executive officer, said the company was developing several new projects in Peru and is on the lookout for a new copper project in Peru, Colombia or Argentina.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: July 21, 2007

Corporacion Aceros Arequipa invests USD 40 mln

Peruvian Corporacion Aceros Arequipa announced that it will expand its Pisco (Ico)-based plant. The company plans to invest USD 40 million in the project. The expectation is that the facility will reach the production of 600,000 metric tons next year. In 2006, the facility produced 400,000 metric tons of steel products. BIS - Business Information Systems

Publication: Peru21Online - Economics
Provider: Peru21
Date: July 21, 2007


Colombian Promigas, British Ashmore Set Up Unit for Peruvian Operations

Colombian gas utility Promigas and Ashmore Energy International, a company owned by British Ashmore Investment Management, have set up a unit for their Peruvian operations, Colombian daily Portafolio reported on July 17, 2007.

The Peruvian unit is named Compania Peruana de Servicios Energeticos (Copeser). It will manage the operations of Peruvian natural gas company Calidda, which Promigas and Ashmore acquired in June 2007.

Promigas acquired a stake of 40 pct in Calidda, while Ashmore acquired the remaining 60 pct. Ashmore Energy International has a stake of 53 pct in Promigas.

Copeser is expected to make a capital injection of $12 mln (8.68 mln euro) in Calidda in the near future.

Promigas will invest $46 mln (33.27 mln euro) in the expansion of the natural gas distribution service in the provinces of Lima and Callao, western Peru, for 2007 to 2008, the Latin America News Digest reported on March 23, 2007.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: July 18, 2007

Geneva Resources, Inc. Reports on Gold Mineralization at Vilcoro Gold Property, Peru

President, Marcus Johnson, and Lori McClenahan, President of St. Elias Mines Ltd. ("St. Elias"), provide the following update with respect to the ongoing Phase I exploration program at the Vilcoro Gold Property (the "Property") located in north-central Peru: Results from 256 channel samples have confirmed disseminated mineralization and so far defined two mineralized trends at the Property. Geneva has an option to earn a 66% interest in the Property from St. Elias.

A total of 256 channel samples and 28 check samples have been collected to date from outcrops, trenches and underground workings. Most of the channel samples are 3 to 5 meters long. This work has defined two mineralized trends referred to as the Main Trend and the South Trend. Six individual mineralized zones (Zones 1 through 6) have been identified within the Main Trend and three individual mineralized zones (Zones A though C) have been identified within the South Trend. The South Trend lies approximately 200 meters to the south of the Main Trend and comprises an east-west alignment (parallel to the Main Trend) of mineralized hydrobreccia occurrences in three zones


The Main Trend extends for 1.1 km in an east-west direction with an average width of 60 meters in a north-south direction and is currently defined by 174 channel samples. The Main Trend encompasses one higher-grade zone (Zone 1) and five lower-grade zones (Zones 2 to 6). The Main Trend is open to the east and west, as are most of the individual zones within the Main Trend.

Zone 1 is a continuous zone of gold-silver mineralization measuring 120 meters by 20 meters. All samples are from old underground workings. Eighty-three channel samples have a weighted arithmetic average grade of 3.43 g/t gold excluding a very high-grade sample that assayed 842 g/t gold.

Zone 2 is 120 meters east of Zone 1 and is defined by nine samples with an average grade of 0.51 g/t gold across an area measuring 60 meters by 25 meters.

Zone 3 is 250 meters east of Zone 1 and is defined by nine samples with an average grade of 0.54 g/t gold across an area measuring 30 meters by 10 meters.

Zone 4 is 60 meters south of Zone 1 and is defined by eight samples with an average grade of 0.36 g/t gold across an area measuring 50 meters by 10 meters.

Zone 5 is 110 meters west of Zone 1 and comprises a 30-m-long trench from which eight continuous samples returned an average grade of 0.17 g/t gold.

Zone 6 is about 700 meters west of Zone 1 and comprises eight tunnel and trench samples with an average grade of 0.54 g/t gold across 40 meters.


The South Trend lies approximately 200 meters to the south of, and strikes parallel to, the Main Trend and comprises an east-west alignment of mineralized hydrobreccia occurrences in three zones (Zones A through C). It is not as well defined as the Main Trend because only 8 samples have been collected to date.

Zone A: 9 meters grading 0.41 g/t gold (3 samples)

Zone B: 10 meters grading 0.71 g/t gold (3 samples)

Zone C: 5.4 meters grading 0.85 g/t gold (2 samples).

Management is very pleased with this evidence of disseminated mineralization on the Vilcoro Property with grades that are comparable to what is presently being mined at the giant Yanacocha Mine (average ore grade 0.8 g/t), and is continuing fieldwork at Vilcoro with emphasis on additional trenching between the individual zones on the Main Trend.

Sample preparation and analytical work was undertaken at ALS Chemex SA laboratory (an ISO-certified facility) in Lima, Peru, using standard industry practice fire assay with an atomic absorption finish.

The Vilcoro Gold Property comprises 1,600 hectares and lies along the same geological belt of Tertiary rocks that hosts many multi-million-ounce deposits in northern Peru such as Newmont's Yanacocha Mine (+40 million oz gold) and Barrick's Pierina deposit (8 million oz. gold). The Property is favorably located adjacent to the claim block that covers the Lagunas Norte mine (+9 million oz gold) recently put into production by Barrick Gold in the Alto Chicama mining district of central Peru.

Geneva Resources, Inc. is a mineral exploration company participating in known mineral producing regions. The Company is focused on the exploration and advancement of well-defined gold, copper and mineral prospects. Geneva Resources' current exploration initiatives include Central Peru; Nigeria, Africa; Saskatchewan, Canada, and Panama.

Publication: PR Newswire
Provider: PR Newswire
Date: July 18, 2007


Chile expands import of Peruvian pisco

Chile has surpassed the US in the import of Peruvian pisco (distilled liquor). From January to May this year, Peru exported 31 percent of its pisco production to Chile and 30 percent to the US.

Peruvian exports of pisco totaled USD 313,533 from January to May, an increase of 239 percent if compared with equal period of 2006 when exports reached USD 92,613.

Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: July 17, 2007

New ethanol investments in evaluation

Members of the Ethanol Commission of the United States would visit Peru with the purpose of evaluating the possibility of making investments in the production of this fuel, informed Brian Deam, president of the commission.

Also, Florida TRADING Area of Americas (FTAA), of which Deam also is president, will make feasibility studies that aim at the ethanol production in the short term. In that sense, it informed that one has met with the representative of the Andean Interregional Commission, formed by nine regions of Peru, in order to establish what areas are most interesting to undertake this type of investments. Deam indicated that the project wants Peru to become an ethanol producer in order to satisfy its own demand and to generate enough volume to export to the U.S..

“We will be in Peru to promote the use of the ethanol as the biocombustible of the future”, commented the holder of the FTAA.

In 2006, the U.S. demanded six trillions of gallons of ethanol in all the nation, of which two trillions were imported. Deam indicated, in addition, that the oil crisis with Iraq and Venezuela has forced this country to look for other alternatives of energy.

Publication: El Comercio
Provider: El Comercio
Date: July 17, 2007
The translation has been prepared using machine translation software, which has been enhanced with a specialized dictionary.


Peruvian Clabe Andina To Invest $6.0 Mln in Four-Star Hotel Near Machu Picchu

Peruvian business group Clabe Andina will invest $6.0 mln (4.35 mln euro) in the construction of the four-star Sumaq Machu Picchu Hotel near Machu Picchu, southern Peru, the general manager of Clabe Andina, Angie Clavijo, said on July 15, 2007.

The hotel will be located in the district Aguas Calientes, the starting place for visits to the city of the old Inca Empire, Machu Picchu.

The new hotel will have 60 rooms, Clavijo was quoted as saying. The hotel will offer wireless Internet, TV and room service among other services, Clavijo added.

The hotel near Machu Picchu will be the first one to be built by Clabe Andina.

The construction of the hotel is expected to generate 1,000 jobs, while its opening will create 80 direct ones, the general manager was quoted as saying.

Machu Picchu was recently declared one of the seven New Wonders of the World.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: July 16, 2007

Mall Plaza Will construct Three Shopping Centers In Peru

The Chilean group Mall Plaza announced the construction of three shopping centers in Peru, which were located in the Limean district of Santa Anita, the district of Bellavista of the Callao and in the city of Trujillo, with an investment of US$ 138 million.

For the development of these projects, Mall Plaza has been united to Ripley and Malls Peru, branch of Investments and Services Falabella Peru.

The executive vice-president of Mall Plaza, Fernando de Peña, emphasized that these three shopping centers will be managed by the group Mall Plaza and will generate approximately 6,000 jobs.

He emphasized that “we have already the lands to develop these three shopping centers in mighty zones, and hope with them to contribute to the development that are living these places, as well as to the quality of life of his inhabitants”.

The executive explained that the first of the three shopping centers in opening his doors he will be the one of Trujillo. “We are working in this project and we hoped to inaugurate it by the end of November. He projects that it will obtain sales in the first twelve months of US$ 135 million and a flow of a million visits”, said.

The new shopping center will count on two department stores: Saga Falabella, and Ripley of 7,000 square meters each one, a Tottus supermarket and a Sodimac (home improvement), in addition to 120 specialized stores.

“Additionally, it will have a food court, multicinema, arcades, a modern gymnasium, a financial center, five restaurants and a casino”.

In a second stage, a medical center will rise, offering to the inhabitants of this zone the most complete and integral supply of products and services. “In addition we have several agreements with operators like Cinemark and Coney Park, restaurants Pardos and Bembos, pharmacies Mifarma and Inkafarma, Banco Continental and Banco de Crédito, Vestuario Nu, Mae Alcott, Ritzy of Italy, Reef, Dressing gown, Do It, Triathlon, Ada Fashion, bookstores Crisol and Zeta Bookstore, among others”.

Publication: Economic & Business Report - The Peruvian Brief
Provider: Economic & Business Report
Date: July 16, 2007

The translation on the following pages has been prepared using machine translation software, which has been enhanced with a specialized dictionary.