With gold looking comfortably entrenched above US$300 per oz.,
Between 1995 and 1996, the company ran a 35-tonne-per-day pilot plant that it subsequently expanded to 120 tonnes per day. Operations were placed on care and maintenance in early 1997, owing to severe El Nino winter conditions and slumping gold prices.
More than 4,100 metres of horizontal and vertical workings were developed underground before the mine was shut down. By then, about 11,600 metres had been drilled.
The study calls for a cash infusion of US$3 million to restart operations. The estimate includes a provision for working capital.
Proven and probable reserves stand at 67,800 tonnes grading 1.56% copper and 18.7 grams gold per tonne. The estimate assumes dilution of 22% and excludes 208,200 tonnes of inferred material that runs 19.2 grams gold and 1.58% copper.
Two high-grade veins, the Maria Elena and the newly discovered Carmela, are excluded as well. Those and other high-grade veins will be explored in an upcoming drill campaign that aims to outline enough material to warrant an increase in mining rates to 5,800 tonnes monthly.
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