Mining Technology

Daily Newsletter

07 August 2023

Daily Newsletter

Valor secures final drilling permit for Peruvian copper project

The company will undertake 5,000m of diamond drilling work to initially test four key targets.

Valor Resources has secured final regulatory approval from the Peruvian Ministry of Energy and Mines to commence the drilling programme at the Picha Copper Project.

With the receipt of the Autorización de Inicio (permission to begin drilling), the company can drill up to 120 holes within the approved effective area at the project.

Valor will undertake 5,000m of diamond drilling work to initially test four key targets: Cobremani, Cumbre Coya, Maricate and Fundicion.

The permit follows the issuance of the environmental impact statement (EIS) for the Picha project in March 2023.

Valor executive-chairman George Bauk said: “Valor has developed an incredible pipeline of large-scale, high-impact porphyry, epithermal and CRD [carbonate replacement deposit] targets across the Picha Project tenements – and we are very much looking forward to unlocking the enormous potential of this project through the maiden 5,000m drill programme scheduled to commence in September.”

Recently, Australian miner Firetail Resources signed a binding term sheet to purchase up to 80% of Valor’s subsidiary Kiwanda, which owns the mining concessions for the Picha and Charaque copper projects.

Located in the Moquegua and Puno departments of southern Peru, the Picha copper-silver project has 27 mining concessions covering 200km². It is prospective for multiple styles of copper mineralisation.

Bauk added: “The new structure we have implemented through the Firetail transaction will ensure that we maximise the opportunity in Peru while freeing up resources to focus on our high-potential uranium and rare earth assets in Canada’s Athabasca Basin.”

With the sale, Valor intends to focus on its uranium portfolio in Canada.

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.