Coronet Metals Completes Social Baseline Study on Controversial Goldmine

Canadian-based Coronet Metals Inc. announced the completion of the social baseline report for the Yanamina advanced stage gold project in Ancash province, Peru. Coronet’s objective is to re-establish the required permitting to advance the Yanamina Project in harmony with the local communities, after protesters backed by the regional governor have expressed fears that the mine will harm their local environment. Despite the concerns, the conducted study shows that the Yanamina project incorporates a strong commitment to social and environmental sustainability that includes health and education, job training, agricultural improvement programmes and the formation of community partnerships.

Peru is the world’s largest producer of silver and sixth largest producer of gold with a number of gold and silver mines across its territory. The Yanamina gold project is located in north-central Peru in Ancash province, approximately 16 km east of the town of Caraz and 40 km to the north and 120 km south of Barrick Gold’s Pierina and Alto Chicama/Lagunas Norte gold mines, respectively. Based on an estimation completed in 1994 and 1996 by a former owner of the gold mine, Latin Gold, the Yanamina gold project has an existing resource of approximately 210,000 ounces of gold and 1,400,000 ounces of silver. Coronet further reports good existing infrastructure in the region, along with an initial mine life estimate of 8+ years. But just as any gold mine project, Yanamina was associated with environmental and economic concerns in regards to the local communities.

!m[](/uploads/story/51/thumbs/yanamina_gold_deposit_inline.png)After local protestors stalled the Yanamina gold project in Peru over environmental concerns, Coronet’s Peruvian Community Relations team has been given the task to conduct a social baseline research from December 2011 through March 2012. The team’s work consisted of interviewing stakeholders, conducting research and collecting information to help identify, analyse and define their concerns and expectations in regards to gold mining in general and the Yanamina Project and Coronet in particular. The results have been encouraging with the majority of the stakeholders supporting the development of an environmentally sound, responsible and safe gold mine. The Community Relations team’s conclusion is that Coronet can move the Yanamina Project forwards, which, according to Coronet, is an essential preliminary step in earning the support of the project’s stakeholders.

Coronet is confident that the Yanamina Project is in line with the Peruvian government’s goal of reducing poverty through the execution of an environmentally sound mining project that ensures significant economic benefits to the local community. In fact, this is exactly where Coronet believes to have an advantage over its competition. “Coronet Metals is focused on earning the trust of the local community,” states CEO Joel Dumaresq, “that involves making them stakeholders in the project, receiving direct employment, education, health and economic benefits.” As new business standards solidify globally, investors in Peru will also start turn their attention to near-term gold producers with a strong commitment to social sustainability and pioneering community relations strategies. This being so is the reason Coronet management has planned a number of community relations projects that will strengthen ties between the company and the local community.