LATIN AMERICA — More ounces from Eldorado mines

The La Trinidad mine in Sinaloa state, Mexico, has proved to be a good buy for Eldorado Gold (ELD-T), which credits its purchase of full ownership with an 83% increase in gold production in 1997.

Production at the company’s other two mines, Sao Bento, near Belo Horizonte, Brazil, and La Colorada, in Sonora state, Mexico, also increased, raising Eldorado’s total production to 188,952 oz. gold for the year ended Dec. 31, 1997.

Trinidad’s actual production in its first full year of operation was 29,810 oz. gold. From start-up in October 1996, to the end of that year, it produced 6,927 oz. Its average cash cost in 1997 was US$239 per oz.

Production at Sao Bento doubled, to 105,907 oz. from 52,370 oz. The mill handled 437,000 tonnes of ore, more than double its 1996 throughput, compensating for a slight decrease in millhead grade. Total cash costs at Sao Bento fell to US$304 per oz. from US$337 the year before.

The Sao Bento plant is being expanded, to complement last year’s increase in hoisting capacity, and costs are expected to fall to an average US$260 per oz. in 1998.

At La Colorada, both production and costs were higher, partly owing to a decrease in grade. La Colorada produced 53,235 oz. in 1997, compared with 47,219 in 1996, and total cash costs were higher by US$84 at US$331 per oz.