With a positive feasibility study complete, Campbell Resources (CCH-T) is moving to develop its Cerro Quema gold deposit in southwestern Panama.
The property hosts two epithermal gold deposits (La Pava and Quema-Quemita), with total minable reserves of 8.8 million tonnes grading 1.2 grams per tonne (equivalent to about 347,000 oz. of contained gold). Both deposits will be developed as open pits, with La Pava entering production first. The operation should have annual production of around 50,000 oz.
Stripping ratios are low — 0.64-to-1 at La Pava and 0.4-to-1 at Quema-Quemita — and the cash cost of production is expected to be around US$180 per oz. Heap leaching should recover about 86% of the gold.
Campbell’s capital expenditure for Cerro Quema is estimated at US$32.8 million, and the company plans to use internal funds to cover the cost. The company has submitted the mine plan to the Panamanian government, which could approve the project as early as January. Design and specification work is under way and site roads are being constructed.
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