This deposit was recognized as such in the late sixties and early seventies, when the first exploration work began. Subsequently, numerous technical and economic studies followed one another until 1987, when the Mining Company Providencia S.A. (CMPSA) started the economic production of the deposit. A decade later, in 1997, CMPSA had already produced 5 million ounces of silver with an average grade of 500gr / ton of silver. That year, production stopped, mainly due to problems related to internal production costs and the value of metals in the international market. Up to now, only three junior companies have carried out re-evaluation of the deposit.
Providence has many solid points in terms of its technical and economic feasibility, which not only include excellent geological parameters, but also advantages in terms of infrastructure. These advantages consist mainly of its proximity to the national route N ° 52, which leads to the international pass with the Republic of Chile (Jama) and the port of Antofagasta. In addition, it is located very close to the Atacama gas pipeline, a potential source of cheap energy for any project in the Puna.
The company is trying effortly and with all its resources to start up his polymetallic project again, taking into account Providencia once again within the rich history of mining production in the province of Jujuy.
During 2018, Hanaq Argentina made determined advances in the technical re-evaluation of the project, focusing on the reprocessing of technical data obtained in recent explorations. We are working on metallurgical, resource evaluation, topographic, socio-environmental impact and exploration studies. These studies will allow us to approach our objective of reactivating production in this important mine.
To achieve this, we are working together with the provincial mining authority, local representatives and indigenous peoples. We established a team of geologists and mining engineers with experience in the implementation of this type of deposit, forming collectively with other professionals, a multidisciplinary team for the exploration and evaluation of mining projects.
We are currently evaluating economic variables related to the operation and metallurgy that enables all those involved in this long-awaited project to benefit.
We are actively working on the planning of the handling and treatment of environmental passives generated during production in previous decades, incorporating state-of-the-art technologies and international environmental safety standards for mining operations.
Our core objective is to launch this project with the best practices, working together with local communities and respecting the environment.