MINING IN MEXICO — Torres’ costs at US$245 per oz.

On completion of the takeover of International Corona, San Francisco-based Homestake Mining (NYSE) will inherit the 30% owned Torres Mining company in Mexico.

Torres, which is operated by Industrias Penoles, controls a group of four silver and gold mines about 250 miles northwest of Mexico City. The group, which includes the Torres-Cedros, Peregrina, Cebada and Bolanitos mines, feeds a 2,500-ton-per-day concentrator at the Torres-Cedros mine. Concentrate from the mill is shipped about 250 miles to a smelter at Torreon in northeast Mexico.

Combined proven and probable reserves at the four operations were last stated at 4.03 million tons grading 0.10 oz. gold and 6.8 oz. silver per ton. Torres produced 54,164 oz. of gold and 3.79 million oz. of silver in 1991 at an average cash cost of US$245 per oz. gold-equivalent. This compares with production of 53,144 oz. of gold and 3.53 million oz of silver produced in 1990 at an average cash cost of US$272 per oz.

Corona also has an indirect 26.8% interest in the Encantada silver lead mine in Coahuila, Mexico. The mine was closed in 1986 because of low metal prices, although it did make several shipments of high grade ore between 1988 and 1990 to a smelter in order to fund exploration work. The mine resumed production in January, 1991, but low silver prices and production problems resulted in operating losses.