Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
Once the mining concession has been obtained, the title holder is able to explore and exploit
the minerals within the mining concession including tailings and residual material. To retain
the rights to the concession, the title holder must maintain the concession in good standing
through the annual “patentes” payment, the cost of the “patentes” per “cuadrícula” being
about USD 40.00 per year (USD 80.00 if the concession has more than five years). If the title
holder continues to make the “patentes” payment on time, the mining concession is
indefinite, according to current legislation.
“Cuadrícula” is the mining measure unit, which is an inverted pyramid with the inferior vertex
pointing to the earth’s core, with an exterior perimeter equal to 25 hectares. Some existing
mining concessions have been applied for and granted according to the system governed by
the old Mining Code, which has not been in effect since 1997. However, the concessions are
totally legal. The measure unit of the mining concessions obtained according to the old
Mining Code system is the “pertenencia minera”, which is an inverted pyramid with the
inferior vertex pointing to the earth’s core, with an exterior perimeter equal to one hectare.
Mining concessions cannot be transferred, sold or mortgaged. Joint Venture agreements are
permitted.
The Bolivian Constitution passed and enacted in February 2009, on its article eighth section
3, of the Transitory Provisions Chapter, establishes that all the mining concessions must be
adapted to the new constitutional regime and then must be converted to “mining contracts” in
a term of one year from December 6th 2009.
Since 06 December 2010, a new Mining Law compliant with the Constitution enacted in
February 2009 was not in effect, the Bolivian government issued the Supreme Decree No.
726/2010. The mentioned Decree on its first article establishes that all the mining
concessions (while the new Mining Law is being prepared and then enacted) will have the
category of “Autorizaciones Transitorias Especiales” or Special Transitory Authorizations.
The second article of the Supreme Decree No. 726/2010 also establishes that the preestablished
rights of the Special Transitory Authorizations are guaranteed.
The Codigo de Mineria (1997) is available in an official Spanish-English side-by-side version,
which facilitates understanding the Bolivian mining code. Key features are:
There is only one type of mining license, a “La Concesion Minera” (currently
known as “Special Transitory Authorization STA”), which is comprised of 25 ha
units, named “cuadricula minera”. A maximum of 2,500 units is allowed for a
mining concession.
There is no limitation to the number of concessions that can be held by a
company or an individual.
Field staking is not required; concessions are applied for on 1:50 000 scale base
maps.
The concessionaire has exclusive rights to all minerals within the STA.
If the title holder continues to make the “patentes” payment on time the term of
the mining concession is indefinite.
Mining concessions cannot be transferred, sold or mortgaged.
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
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