Mine Expansion funded by cash flow, Milner says

Positive cash flow from mining operations at the San Andres open pit in Honduras is funding mine expansion, partners Milner Consolidated Silver Mines and Madeleine Mines say. Both companies hold a 25.5% interest in a Honduran company which is the property owner.

Agglomeration equipment, being added at the site, will enable an increase in gold production, Milner says in a report to shareholders. However, annual gold production is not reported. Mining income is also funding exploration of the property, which has outlined five new mineralized zones. The Zona Plaza ranges up to 150 ft in thickness and has been tested along 600 ft of strike. Grades average 0.1 oz gold per ton. The Zona Gloria is 25 ft wide and strikes for 250 ft. This zone represents the extension of the Gloria pit, now being mined. Grades average 0.08 oz.

Milner is also active in Canada, with exploration programs in the North Caribou, Meen-Dempster and Gowganda areas of Ontario. In Gowganda, Agnico-Eagle Mines continues to mine silver ore from Milner’s Castle mine.

Near Joutel, Que., Duncan Gold Resources is completing a $149,500 exploration program on Milner’s 30-claim property. The claims adjoin the southern boundary of Agnico-Eagle’s Telbel gold mine. Of seven diamond drill holes completed by Duncan, all failed to intersect economic gold values.