CODELCO MAY HIKE CATHODE OUTPUT

CODELCO MAY HIKE CATHODE OUTPUT

Codelco-Chile's Salvador division anticipates study results will show its Damiana deposit capable of raising company copper cathode output by 15,000 metric tons a year, an official said last week.

Preliminary results indicate the deposit holds 300 million metric tons of oxide ore, grading 0.5 percent copper, said Lincoyan Hernandez, Salvador's planning and development manager.If the study results, expected in December, are good and if Salvador receives funding from the head office for the project, construction would start in 1996, with first production coming two years later.

The Damiana oxides would be processed along with oxides from a new heap- leaching operation scheduled to start up in July.