() (OTCMKTS: LSANF) (FRA: L41A) marked an important milestone for its Vizcachitas copper project in Chile, by obtaining the necessary environmental approval to carry out the drilling, which will allow it to complete the pre-feasibility study (PFS) in progress.

The company said it had received unanimous approval from the Regional Environment Committee for the work. This means Los Andes can now sink, if needed, up to 350 holes on up to 124 platforms over the next four years.

READ: Los Andes Copper welcomes final results of pre-feasibility metallurgical testing on Chile’s flagship project

“We are delighted with the unanimous approval received to drill at Vizcachitas. This decision is particularly important as the drilling allows the company to complete the ongoing PFS,” Executive Chairman Fernando Porcile said in a statement.

“As we continue to make progress in delivering a robust PFS, we look forward to sharing positive updates in the months to come.”

The deposit lies in a large tract of land, spanning 308 square kilometers (km2), of which only a small portion has so far been explored, and lies in the same geological belt as several other giant porphyry deposits .

The project is currently at the PFS stage after a positive preliminary economic assessment (PEA) in 2019 showed convincing economics.

Using a copper price of $ 3.50 per pound, the after-tax net present value (NPV) was set at $ 2.7 billion, while the internal rate of return (IRR) was 26.7%. The initial investment required has been estimated at US $ 1.88 billion for a project with a payback time of 3.4 years and a mine life of 45 years.

As a result of this drilling project, Los Andes said the proposed work plan included infill drilling in the PFS open pit, drilling to extend the higher grade mineralization north of the PEA pit and to test the potential geophysical targets identified in 2020.

Vizcachitas already hosts measured and indicated resources of 11.2 billion pounds of copper, 400 million pounds of molybdenum and 43.3 million ounces of silver.

In addition, there is “significant” exploration potential with the potential to increase the resource base beyond the initial 45-year life of the mine modeled in the PEA, the company noted.

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