Wheaton turns its attention to Costa Rica

Toronto-based Wheaton River Minerals (WRM-T) has added nearly 2 million oz.

to its gold mineral base by acquiring the Bellavista gold project in Costa Rica from Minera Rayrock (MRN.Z-T).

Wheaton concluded the takeover by issuing to Minera 2 million shares and 2 million share purchase warrants exercisable at $1 per share for five years.

Minera also received $100,000 in cash and, if the project is brought into production, will be issued a further $1 million.

Bellavista hosts a resource of 37.4 million tonnes grading 1.63 grams gold per tonne, equivalent to 2 million contained ounces of gold. Within that resource are proven and probable reserves, potentially minable by open-pit methods, of 10.7 million tonnes grading 1.76 grams gold.

The reserves were calculated at a cutoff grade of 0.8 gram gold and take into account a stripping ratio of 2.26-to-1.

In addition, a higher-grading section of the remaining resource, which is potentially amenable to underground bulk-mining methods and open in two directions, is estimated to host 3.6 million tonnes grading 3.28 grams gold.

Wheaton will attempt to upgrade this resource to the reserve category by extending an existing adit 250 metres and carrying out a 7,800-metre program of infill drilling underground.

The company has also taken, for metallurgical testing, a 5-tonne bulk sample from existing underground workings.

In other news, production at Wheaton River’s Golden Bear mine in northwestern British Columbia topped 27,000 oz. at the end of September. The open-pit, heap-leach operation poured its first gold bar in mid-August and is 86%-owned by the company.

Production will continue until the end of October, when a winter shutdown is scheduled.