El Peon was put into production in late 1999 at the cost of US$77 million, of which US$50 million was provided by a syndicate of banks. More than half the loan has been repaid.
During the 90-day test period, the mill processed ore at design capacity of 2,000 tonnes daily while maintaining recovery rates above 90%. Other conditions were also satisfied.
Meridian also has been replaced by its Chilean subsidiary as loan guarantor, enabling it to remove margin-call requirements on 300,000 oz. of hedged production. The facility, which was a condition for the loan, is spread over four years.
El Peon is expected to produce 285,000 oz. by year-end at a cash cost of under US$60 per oz. By July, the operation was well on its way to achieving that goal, having produced 136,041 oz. gold and 1.8 million oz. silver at a cash cost of US$57 per equivalent-ounce. Total costs for that period were US$95 per equivalent-ounce.
Meridian also owns a 30% stake in the Jerritt Canyon gold mine in northern Nevada and a 100% interest in the Beartrack gold mine in Idaho.
Be the first to comment on "El Peon meets the grade"