Two major expansion programs are being considered by LAC Minerals (TSE). At the company’s El Indio gold mine in Chile, the company is reviewing the feasibility of doubling gold production from 200,000 oz. per year to more than 400,000 oz. annually. “We’re studying it,” a LAC spokesman told The Northern Miner but refused to provide any details about the proposal. El Indio is the jewel in the Bond International Gold portfolio, which came under LAC’s control, following the purchase of the 65% control block in Bond for US$373 million in October, 1989.
El Indio is one of the world’s lowest-cost and highest-grade gold mines that produces an ounce for about US$63. The mine yields more than 200,000 oz. annually.
A second expansion program is also being considered at LAC’s Toqui zinc-lead-silver-gold mine, also in Chile. Peter Allen, LAC’s president, has said that production from Toqui could be tripled. The impetus for such a large rate increase stems from a major new discovery made by LAC on the Toqui property in 1989.
Toqui, owned 100% by LAC, operates at a rate of 1,000 tons per day, processing ore grading more than 6% zinc. Drilling west of the mine encountered zinc-lead mineralization in 30-ft. thick lenses grading 8-10% zinc. Significant gold values exceeding 0.1 oz. gold per ton are also associated with the deposit.
LAC’s discovery led to a doubling of reserves to 3.9 million tons grading 7.6% zinc, 0.05 oz. gold, 0.71 oz. silver, 0.23% copper and 0.46% lead. Possible reserves total three million tons grading 6.7% zinc, 0.03 oz. gold, 0.54 oz. silver with copper and lead credits.
LAC, including its equity stake in Bond, will produce about 785,000 oz. of gold this year. If El Indio is doubled, that output could rise to about one million ounces to LAC’s credit.
Be the first to comment on "LAC to double gold output at El Indio in Chile"