Cerro Mojon mine reaches full production

The Cerro Mojon gold project in Nicaragua has entered commercial production.

Owner and operator Greenstone Resources (GRE-T) expects the open-pit, heap-leach operation to yield 28,000 oz. gold during the remainder of the year, at cash operating costs of $175 per oz.

From startup last April through to the end of July, 251,000 tonnes of ore were mined and crushed. The material graded 1.98 grams gold per tonne and is slightly shy of the model grade of 2.06 grams.

Currently, 150,000 tonnes are fully under leach, and Greenstone reports that metallurgical recoveries are in line with predictions made in the original feasibility study (80% in 60 days).

Greenstone will start placing one additional cell under leach in each successive month, with cells being re-used every six months, following rinsing, detoxification and off-loading.

Facilities for a second phase of expansion were completed during commissioning, and, by year-end, the project is expected to be producing at an annual rate of 135,000 oz. By the end of next year, a third phase of expansion is expected to boost this rate to 180,000 oz. per year.

At last report, the Cerro Mojon deposit hosted 33.4 million tonnes grading 1.35 grams. Proven and probable reserves stood at 28.8 million tonnes grading 1.4 grams, of which 16.5 million tonnes grading 1.8 grams are classified as minable reserves.