Caprica SCM

OUR EXPERIENCE

Our Experience in developing engineering projects for EPCM Copper, Gold and Iron ore projects mines since 1998, has allowed the understanding and the potential behind the exploitation of IOCG - multi mineral deposits, which allow an increased added value in the generation of cash flow and eventual profits.

Most important, the mine is not dependent on only one type of mineral and its specific income due to market tendencies, it can keep operational, since the other minerals will not vary negatively, and will have independent market behaviours.

OUR VISION

Our Vision is to create a company that is leader in the development of new multi mineral processes, and is able to consolidate the mechanism of exploitation and processing to take 100% use of the mineral deposit.
Caprica SCM (Contractual Mining Society) is a mining company located in the second region in the north of Chile. It is located near the town of “Mejillones”, know for it’s fishing industry. In the last 10 years, this town has developed considerable infrastructure, becoming one of the largest multipurpose ports and one of the towns with large Energy infrastructure comprised of Coal Energy producing plants and Gas Energy plants for the supply to large mining companies such as “Minera Escondida” (owned by BHPBilliton) and “Codelco Chuquicamata” (government owned).
The road infrastructure is excellent, and the mine is located only 40 km from the port of Angamos.

Exploitation:
The mine currently exploits the following minerals:

1. Iron Ore (magnetite):
a. Fines -7mm of 62% concentration.
b. Fines -7mm of 58% concentration.
c. Lumps +7mm/-25mm of 62% concentration.

2. Cupper Ore:
a. 1.6 – 2.5% copper oxide in lumps.

Exploration:
The company has a policy of ongoing exploration in the following minerals:

1. Iron Ore, in the form of magnetite and Hematite and it’s transitions, such as maghemite and others.
2. Copper Ore, in the form of Cupper Oxides and Cupper sulfur.
3. Gold Ore.
4. Others, such as manganese, titanium, rare earth, etc.

By-products:
The company, due its processing design also produces “base material” for construction, which is supplied regularly to port construction related activities as well as new power plant projects.
The following report summarizes and conveys as best as possible the capacity of the mining company to produce in all of the above-mentioned minerals.

The mining company is composed of the following business units:

1. Caprica Gold SCM:
Caprica Gold SCM was created due to the large traces of gold deposits fund associated to the iron ore and the large presence of quartz formations in the properties.
The area is also well know for it’s past in gold. A number of the properties /concessions in the hands of Caprica SCM where consistently exploited for gold.
The company is currently expanding and sizing these deposits.

2. Caprica Base Metals SCM:
Caprica Base Metals SCM was created to study and investigate the potential of metals in the properties belonging to Caprica SCM.
This division is currently studying lead and zinc among other minerals to view the potential to exploit these in the near future.

3. Caprica Aggregates SCM:
Caprica Aggregates SCM has for many years delivered granite boulders for the maintenance and expansion of port infrastructure.
The granites found in Caprica SCM properties are ideal for beach and port reinforcing. The market share for this type of sales has increased in the last year, and the whole of the Antofagasta and Mejillones area is in great need for this type of product, especially due current port infrastructure projects and artificial beach construction mainly in the area of Antofagasta.

As part of the production of magnetic iron ore, Caprica SCM produces a by-product made of inert base material ideal for construction and road infrastructure.
The crushing plant at Caprica Iron SCM produces a perfect base material that is greatly used to improve port stockpile surfaces and access roads.
Caprica SCM is currently delivering base and aggregate material to the port of Angamos for port infrastructure maintenance and expansion.

4. Caprica Iron SCM:
Caprica Iron SCM is the branch/division of Caprica SCM that deals with the extraction, production and commercialization of iron ore.
Caprica Iron SCM has the permits to be able to extract 200,000 tonnes of run of mine (ROM) to produce iron ore mineral of upto 62% FeT, a composite of mainly magnetite ore combined with hematite and transitions of Fe mineral such as maghemite.

Caprica Iron SCM entered production in 2014, breaking all the barriers necessary to become the sole producer of iron ore in the extreme north of Chile, in an area where copper is the predominant mineral exploitation. Towards the end of the year 2014, and in the light of plummeting prices of Fe around the world, Caprica Iron SCM became the second biggest producer of magnetite ore after CAP (Compañía de Aceros del Pacifico).

For 2015, Caprica Iron SCM has restructured it’s operational costs and adjusted it’s expense structure to respond to the declining mineral market, ensuring its existence producing and waiting for the upsurge of the prices to consolidate as the second producer in Chile of iron ore magnetite, which represents 5% of this type of mineral available around the world.

5. Caprica Copper SCM:
Caprica Cupper SCM is the branch/division of Caprica SCM that deals with the extraction, production and commercialization of copper ore.
Caprica Copper SCM started delivering cupper oxides to Enami in 2014. The grades initially delivered where in the vicinity of 1.6%. Today the mine is able to supply above 2,5% grade. Cupper oxides will be delivered all year during 2015.

Caprica’s properties also have a large percentage of cupper sulfur, with direct relation to magnetic behavior mineral.
The mineralogy of the Mining Company is categorized as IOCG (iron, oxides, copper and gold). This type of formations is very common in Chile, and is part of mineralized belt that extends from the 5th region of Chile to as far as the second region of Chile where the mining company is located.

Iron oxide copper gold ore deposits (IOCG) are important and highly valuable concentrations of copper, gold and uranium ores hosted within iron oxide dominant gangue assemblages which share a common genetic origin.

These ore bodies range from around 10 million tonnes of contained ore, to 4,000 million tonnes or more, and have a grade of between 0.2% to 5% copper, with gold contents ranging from 0.1 to 3+ grams per tonne (parts per million). These ore bodies tend to express as cone-like, blanket-like breccia sheets within granitic margins, or as long ribbon-like breccia or massive iron oxide deposits within faults or shears.

The tremendous size, relatively simple metallurgy and relatively high grade of IOCG deposits can produce extremely profitable mines.

Iron oxide copper-gold deposits are also often associated with other valuable trace elements such as uranium, bismuth and rare earth metals, although these accessories are typically subordinate to copper and gold in economic terms.

The second region of Chile where Caprica is located, is well know for the copper and gold potentials, being “Minera Escondida” (belonging to BHPBilliton) the biggest producer of copper in the world.
Historical Exploitations and Recognized Resources

The following diagram clearly shows the areas of

- Iron (marked in red)

- Copper (marked in green)

- Gold (marked in yellow)