EXPLORATION IN THE AREA OF EL COPPER-174 NEAR NORTH ORE BODY (NOB)In order to ensure the stable production during the third lease term and offset the resources shortage for continuity of Saindak Project operations, SML with the consent of Government of Balochistan selected an area of 20 sq. km near NOB of Saindak Project and has applied for grant of Exploration License (EL copper-174) for copper, gold, silver, lead, zinc and associated minerals over that area on 01.10.2018 and deposited prescribed exploration license fee and all other requisite documents. However, the matter is pending with the Government of Balochistan hence no concrete plan can be designed SML and Geological Survey of Pakistan (GSP) jointly explored the prospects of Copper in Siadiq at Chagai and drilled 3 bore holes at the depth of 400 meters each in the leased area of SML in Chigendiq/Mashkichah near Durbanchah area with a cost of Rs. 45 Million for exploration of Copper and Gold, the results are attractive and further exploration is needed in the area to estimate the reserves. The PL License was expired, SML applied for ML in 2016 but still awaited from Balochistan Government. The Mines & Minerals Department Government of Balochistan has cancelled the allotted area of SML called Dasht-e-Kain, the case is pending before the appellant authority, Secretary Mines & Minerals Department for decision, if SML successes to get back the area, the same area will be further explored and developed to create more jobs and revenues for the people of Balochistan as well. INDUCTION AND PREPARATION OF EXPLORATION TEAM The SML BOD in its 134th Meeting held in Pearl Continental Hotel Karachi on June 30th, 2018, approved three Geology/Mining Software’s along with hiring of professionals i.e Mining Engineers/Geologists, Financial expert and software engineer for training and operating the Software. Now it is in the process of tendering. SML is expecting to establish a well-equipped exploration team for prospecting, exploration, geological modeling, pit designing, mine optimization Mine scheduling and development/exploitation of ore deposits. The existing ore bodies data of Saindak Copper Gold Project would be used and in future, this team would be utilized in rest of the country. FURTHER EXPLORATION OF SAINDAK COPPER GOLD PROJECT EAST ORE BODY (EOB) On 23rd January 2019 MRDL submitted design scheme of Supplementary Geological Exploration for Saindak East Ore Body. As per plan, 23 exploratory holes (7551m) will be drilled for Copper & Gold along with combination analysis elements for Moly, S and Ag. The exploratory drilling was started on 1st March 2019 and was completed on May 21st 2019. Due to mineralization conditions, the exploratory holes were increased up to 46 of 10875.25 meters. As per initial analysis report, the following estimations concluded;
• The mineable ore reserves within the pit limit stands at 80 million tons@ 0.34% Cu on 0.25% cut-off grade.
• The EOB overburden is about 9 million tons and at least 2 years would be required to remove it.
• According to the preliminary calculations by MRDL, on copper prices ranges from US$ 6500/ton to US$ 7000/ton the project may profit a little bit.
• Keeping in view the time factor and the existing ore reserves at Saindak project, EoB development is the sole and only solution to the sustainability of the project and considering the prevailing economic situation in the country, where unemployment is at peak the project is not only providing employment to the youth but also generating profit for the country.