Geotermia Andina to develop Los Despoblados project in Argentina
Geotermia Andina SA signs Letter of Intent with Barrick Gold Corp. on the development of the Los Despoblados geothermal power project in San Juan, Argentina.
In a release today, Argentinian Geotermia Andina SA announces that “it has signed a Letter of Intent with Barrick Gold Corporation, for the development of the Los Despoblados geothermal project in San Juan, Argentina.
Geotermia Andina is working in partnership with Barrick on geothermal developments, which support their renewable energy strategy. Los Despoblados is located just 10kms from Barrick’s Veladero operating mine, with a current energy demand of 14MW.
In the agreement, Barrick will be entitled to earn a 70% interest in the project by funding the drill campaign. The scope of the campaign includes up to 8 thermal gradient drills to a depth 250m each. Based on this program, it is expect that 3 deep exploratory drills to 1500m each will commence in Q2 2013. Completion of Feasibility is expected for Q3 2013, at which time it is expect that long lead items, including the plant, can be specified and ordered.
Dr Giorgio Stangalino, CEO of Geotermia Andina said; “This represents a significant step forward for our geothermal portfolio in Argentina. We had originally identified Barrick as the off-taker of the energy for the project and we are now very pleased to be making this next step together with Barrick as our strategic partner.”
A formal Joint Venture agreement, which includes the participation of EPSE (the utility company of San Juan Province) and which allows for the provision of a Purchase Power Agreement, is due to be announced next month.”
Source: Company release