The first advanced exploration campaign of Hierro Indio concluded with excellent results, promising prospects for Mendoza and Argentina with zero incidents. The collaborative effort between PRC SAU and Hierro Indio S.A. included the participation of the CNEA (National Atomic Energy Commission) and achieved the drilling of a total of 2,480 meters, distributed among 41 wells averaging 60 meters each.
Out of the total obtained cores, 1,407 samples were taken and sent to the Alex Stewart laboratory for analysis. The result of this first exploratory phase, which represents less than 5% of the formation, determined that there are at least 5 million tons of metallic iron in this area alone, a material that Argentina currently imports.
This discovery opens up the possibility of developing an iron mine in Malargüe that could substitute a significant portion of the mineral importation for a period of between 15 and 20 years.
This campaign, compliant with the current laws in Mendoza, primarily relied on diamond drilling of targets previously defined through geochemical, geophysical, and hyperspectral surveys. Detailed geological mappings were also conducted to recognize mineralizations, lithologies, and structures present in the project.
The majority of the identified iron mineral in the project corresponds to the mineralogical variety of magnetite, confirming that the iron production process can be carried out using magnetic methods, as envisioned in the mine’s development plan.
The iron mine had been inactive since the 1970s, and the Argentinean SME Hierro Indio S.A, a wholly Argentinean company, devised a plan to reactivate it. In 2019, the Legislature approved the Environmental Impact Statement (EIS) within the framework of Law 7722. Prior to obtaining the statement, the project underwent environmental assessment, which included technical assessment by a team from the Faculty of Applied Sciences in Industry at the National University of Cuyo.
Finally, in 2022, an agreement was signed between the state-owned Potasio Río Colorado (PRC) and HISA (Hierro Indio SA) to restart operations. For the start of these works, roads were repaired by the Provincial Directorate of Highways (DPV), and water channels and reservoirs were created for the inhabitants of the area.
