The Volcan Gold Project is a development-stage gold project located in Chile’s Maricunga Gold Belt. The project was originally advanced by Andina Minerals, which completed over 150,000m of drilling between 2007 and 2011, a prefeasibility study that contemplated 4.3Moz of gold production over a 15-year mine life in 2011, and an Environmental Impact Assessment in 2012. During this period, Andina also concluded a feasibility study level metallurgy and geotechnical work.
Andina Minerals was acquired by Hochschild Mining in 2012 in an all cash deal for CAD $105M. Following the acquisition, Hochschild undertook a substantial program to relog drill core and update the geological model for Dorado West, the main deposit at Volcan. Subsequently, additional metallurgical test work was undertaken and a preliminary geo-metallurgical model was developed.
Since 2022, Hochschild has been advancing the Volcan Project, looking for ways to maximize value from the asset. In 2023, Hochschild engaged Ausenco Chile to prepare a Preliminary Economic Assessment (“PEA”). The PEA was update by Ausenco in July 2025.
Key Volcan Project Highlights
- Mineral Resource Estimate (“MRE”)1 highlights large-scale resource:
- 9.8 million ounces of gold contained in Measured and Indicated Resources (463.3 million tonnes of at 0.66 g/t gold); and
- 1.2 million ounces of additional gold contained in Inferred Resources (75.0 million tonnes of at 0.516 g/t gold).
- Positive Preliminary Economic Assessment (“PEA”)1 highlighted:
- NPV (5%) = US$1.5 billion and IRR = 29% at US$2,400/oz gold price, after-tax;
- average of 332,000 ounces of gold production per year for first 10 years of operations with 3.8 million ounces produced over the estimated mine life;
- 22 million tonne per annum open-pit, heap leach operation with a 14-year mine life; and
- AISC2 of US$1,094/oz sold, life of mine.
1For further information, refer to the technical report entitled “Volcan Project – NI 43-101 Technical Report on Preliminary Economic Assessment” dated August 29, 2025 with an effective date of July 15, 2025 as prepared by Ausenco. The technical report can be found on the website of Tiernan Gold at www.tiernangold.com.
2All-in-Sustaining Costs are defined as Cash Costs plus sustaining capital and closure costs over payable gold ounces.