In a milestone for Argentine mining, Vicuña Corp. —the 50/50 joint venture between BHP and Lundin Mining— presented the Preliminary Economic Assessment (PEA) for the Vicuña Project in Toronto.
For the first time, the technical study integrates the Josemaría deposit in San Juan, Argentina, and Filo del Sol on the Argentina-Chile border. The PEA not only confirms the viability of a world-class binational district but also projects total investments of $18 billion over the life of the project, including a $7 billion initial phase that could position Argentina among the top global producers of copper, gold, and silver.
The announcement, made during the Prospectors & Developers Association of Canada (PDAC) convention—the world’s largest mining conference—comes at a pivotal moment for the Argentine mining sector. With the Large Investment Incentive Regime (RIGI) already in effect, and Vicuña as the first project to apply under the Long-Term Strategic Export Projects (PEELP) category, the PEA represents more than a technical document: it is a roadmap to transform the San Juan Andes into a mining hub comparable to major districts in Chile or Peru.
A Binational District of Epic Scale
Vicuña Corp. consolidates two major deposits: Josemaría, a copper-gold porphyry in San Juan, and Filo del Sol, an epithermal copper-gold-silver deposit straddling the Chilean Atacama Region.
The PEA outlines a three-stage, open-pit development with an emphasis on operational integration to maximize synergies.
Updated mineral resources as of October 31, 2025, are significant on a 100% basis:
- Measured & Indicated (M&I): 4,181 million tonnes (Mt) containing 14 Mt of copper, 36 million ounces (Moz) of gold, and 729 Moz of silver.
- Inferred: 10,641 Mt containing 32 Mt of copper, 61 Moz of gold, and 1,051 Moz of silver.
This represents a 23% increase in contained copper, 20% in gold, and 21% in silver compared with previous estimates. No mineral reserves are declared yet—typical for a PEA—as inferred resources are considered speculative for economic purposes. Still, the potential for conversion is high, driven by ongoing drilling at Filo del Sol.
Production Profile: 2030 Onwards
The project targets first production in 2030, with an initial life of mine (LOM) exceeding 70 years. The sequential strategy is designed to mitigate risk and generate early cash flow:
- Stage 1 – Josemaría Sulfides (2027-2030): Open-pit mining with shared fleet (360-t trucks, electric/hydraulic shovels). Initial concentrator capacity: 175,000 tonnes per day (tpd), or 64 Mt per year. First six-year grades: 0.40% Cu, 0.31 g/t Au, 1.41 g/t Ag.
- Stage 2 – Filo del Sol Oxides: Heap leaching (up to 90,000 tpd) with SX/EW plant for copper cathodes and Au/Ag doré via Merrill-Crowe.
- Stage 3 – Filo del Sol Sulfides and Expansion: Concentrator to 293,000 tpd (107 Mtpa) with 12 km overland conveyor (two tunnels) and a concentrate treatment plant to remove arsenic.
Average production for the first 25 years: 395,000 t/year of copper, 711,000 oz of gold, and 22.2 Moz of silver. Peak production (years 16-25): more than 500,000 t/year of copper, 800,000 oz of gold, and 20 Moz of silver (equivalent to 800 kt CuEq). Total LOM: 22.3 Mt of copper, 37.2 Moz of gold, 763 Moz of silver.
Metallurgical recoveries over LOM: 83.4% Cu and 59.5% Au for Josemaría sulfides; 64.5% Cu for Filo oxides. Concentrate grade will reach ~27% Cu, initially trucked to Chilean ports, with Stage 3 introducing a pipeline and roaster for optimization.
Vicuña is projected to rank among the world’s top five copper-gold-silver mines, with revenue composition of 60% copper, 32% gold, and 8% silver.
Robust Economics: First-Quartile Cash Flow
The economic numbers are striking. In the base case (prices: US$4.60/lb Cu, US$3,300/oz Au, US$40/oz Ag):
- Post-tax NPV (8%): $9.5 billion
- IRR: 14.8%
- Payback: 8.4 years (from 2030)
- At spot prices (US$6.00/lb Cu, US$5,000/oz Au, US$80/oz Ag): NPV $28.8 billion, IRR 25.5%, payback 5.4 years.
- Average annual free cash flow (first 25 years, post-expansion CAPEX): $2.2 billion.
Costs:
- LOM OPEX: $2.1 billion/year
- Net cash cost (by-product credit): -$0.20/lb Cu (negative in first 25 years)
- AISC: $0.47/lb Cu (first 25 years); LOM $1.38/lb Cu
- Capital intensity: < $30,000/t CuEq
Total CAPEX for stages 1-3: $18.1 billion (Stage 1: $7.1 billion including mine, processing, tailings, and infrastructure). Sustaining LOM CAPEX: $30.3 billion (including capitalized stripping and closure).
Technical Design: From Andes to Plant
The PEA outlines an optimized design:
- Mining: Multiple pits with 15 m benches, 33-45° slopes, up to 300 Mtpa movement. Early focus on Josemaría for cash flow.
- Processing: Sulfides via SAG/ball mills, three-stage flotation, regrind. Oxides via continuous heap leaching, dump for Au-rich material. Tailings: four zoned TSFs (earth/rock, downstream method) with runoff recovery.
- Infrastructure: 220 km northern access road from Angualasto, 500 kV line (167 km, 380 MW initial to 738 MW), water via wells (stages 1-2) and desalination (Stage 3, 2,000 L/s), camps, and wastewater treatment.
All aligned with NI 43-101 standards, with elite consultants including Fluor (EPCM), Ausenco, and Knight Piesold.
National Impact: RIGI as a Catalyst
For Argentina, Vicuña represents more than a project—it is a statement of intent. In 2026, $790 million will be invested (part of $2 billion committed under RIGI for 2026-2027). The project is expected to create 5,500 direct jobs and 19,000 indirect jobs during construction, prioritizing local suppliers. Studies project annual taxes and royalties of $965 million for Argentina ($69 billion LOM). Shared infrastructure—roads, energy, water—could also benefit the broader San Juan region, home to projects such as Los Azules and Altar.
Next Steps:
- NI 43-101 technical report on SEDAR+ within 45 days
- Optimization of Stages 2 and 3
- Detailed engineering for Stage 1
- Environmental approvals: EIA (Argentina) and RCA (Chile)
- Final investment decision by year-end, with financing via a $4.5 billion credit facility