MINERAL EXPLORATION
Chile has approximately 30% of the world�s copper resources and 10% are owned by Codelco. However, this has been achieved over a 100 years of mining history, and after an extensive exploration of Chilean territory, especially during the second half of 20th century, when most of today�s operations were discovered.
Codelco is carrying out exploration both nationally and internationally to maintain and expand its mineral resource base, since it is a way to ensure the company�s future and continue to be a world leader in copper production. In 2011 the company invested US$ 48 million in its mineral exploration plan, mostly in Chile.
During this period brownfield exploration or the process of finding new ore bodies in the area within close proximity to known ore deposits was intensified, mainly focused on the mining district around current production centres (brownfield exploration). The most significant results were obtained in the Andina District, where an ore body was discovered at Cerro Negro; an addition to La Americana, discovered in 2009. Both discoveries next to this mine operation total more than 12 million tonnes of fine copper and confirm that the district contains copper resources unique in the world.
Internationally, interesting results were obtained in mineralised intersections in one of the areas explored in the district of Carajas in Brazil. While in Ecuador, pursuant to the agreement with ENAMI EP, an Ecuadorian state-owned company, the portfolio of mining prospects included new areas of interest. The Company also continued to monitor and look for new opportunities in other Andean countries, especially Colombia.
The strong rise in metal prices boosted non-ferrous mineral exploration budgets that totalled US$ 16.3 billon, higher than the record set in 2008 and up 53% over 2010. Chile is fifth in the world ranking, with US$ 831 million invested in 2011. Furthermore, Codelco increased its exploration budget by 55% over 2010.
In relation to safety, Exploration Management and its subsidiaries in Chile and Brazil had satisfactory results, with only two lost-time injuries and five non-lost-time injuries.
Chile
In 2011 exploration in Chile continued its strategy of focusing on brownfield districts so as to add new resources to its current mining centres.
The brownfield exploration programme aims to discover and assess resources in the area surrounding the deposits in production and contribute new geological information for mining development in line with the needs of each division.
A highlight in national exploration was the confirmation of the Cerro Negro discovery, a mineral resource with approximately 1,000 mt of mineral ore at 0.7% copper and 0.02% molybdenum. Cerro Negro is located underneath the current mine level, one kilometre northeast of the R�o Blanco deposit, which confirms it is a world class district. In 2012 underground drilling will be carried out to delineate the resources, in addition to move forward in recognising other priority areas in the portfolio with geological and geophysical studies, and monitoring.
El Teniente District reached mineralised intersections in two new areas close to the Rajo Sur project; while immediately next to the mine, two new prospects were identified and exploration drilling will be conducted in 2012.
Exploration results in Codelco Norte District have also been interesting. North of the Radomiro Tomic mine, leachable resources were identified of approximately 100 mt of mineral ore, at 0.5% copper. Mineralised intersections were also found east of Radomiro Tomic mine and south of Ministro Hales mine, which could mean prospective of new resources for both divisions.
Basic or greenfield exploration still forms part of Codelco�s strategy. It is focused on assessing and boosting the portfolio of prospects and target areas through the systematic analysis of geological, geochemical and geophysical data to generate new areas, and find large deposits from the first to the seventh region of Chile.
Additionally, Codelco develops collaboration programmes with foreign institutions in innovation and technological transfer of methods used to create prospective areas of interest. This is the case of the application of artificial intelligence methods to process existing information and generate new areas. For the same purpose in 2011, Codelco participated in multi-company programmes, sponsored by Amira, that try to identify diagnosed minerals in halos around the mineralised systems to be used as a prospecting guide.
Codelco has joint ventures in corporate mining property with six companies in the Pasaca project with Rio Tinto; Puntilla-Galenosa project with Pucobre; Anillo project with Fortune Valley Resources Inc.; Salar Grande project with Hot Chili; Sierra Jard�n and Cumbre projects with Antofagasta Minerals, and Desierto project with MMX.
Brazil
Activities will be centred on finding and assessing potential exploration opportunities in the state of Para as well as the states of Tocantins, Mato Grosso, Rio Grande do Sul and Bah�a. Therefore, a portfolio of prospects and exploration targets on properties covering more than 200,000 hectares was created.
Furthermore, mineralised intersections were obtained in one of the target areas in alliance with Pan Brasil, located in the district of Carajas; exploration will be completed in 2012.
Ecuador
At the end of the year permits were obtained to commence drilling exploration in El Palmar Project, located 80 kilometres north of Quito.
In November, the exploration agreement with Empresa Nacional Minera del Ecuador (Enami EP) was ratified, strengthening the portfolio of prospects that will be explored as of 2012.
