Moris lands Manhattan in black

A year after its first gold pour, the Moris mine in northern Mexico has achieved commercial production.

Manhattan Minerals (MAN-T) reports that the mine an — open-pit, heap-leach operation in Chihuahua state — produced 3,303 oz. at a cash cost of US$231 per oz. in the second quarter.

During the first half of 1997, the mine yielded 8,428 oz. at a cash cost of US$245 per oz., and the company realized an average price of US$411 per oz.

Production in 1996 totalled 9,782 oz. gold and 12,418 oz. silver.

Under the current operating plan, the mine is expected to produce 30,000 oz.

gold annually over the next seven years. The long-term cash operating cost is pegged at US$183 per oz.

The mine plan is based on a minable reserve of 4.7 million tonnes grading 1.93 grams gold per tonne, at a stripping ratio of 1.2-to-1.

Manhattan reported earnings of US$417,327 (or US3 cents per share) for the second quarter, compared with a loss of US$70,135 for the same period in 1996.

During the first six months of 1997, the company incurred a loss of US$279,457 (US1 cents per share), compared with a loss of US$448,780 (US3 cents per share) in the first half of last year.

As of June 30, Manhattan had US$15 million in working capital. About US$1.4 million is earmarked for ongoing exploration and development in Mexico and Peru, whereas US$7 million is allocated for the Tambo Grande project in northern Peru, in which the company can earn a 75% interest.

Manhattan is working with the Peruvian government towards the incorporation of Compania Minera Tambo Grande, which will hold a 100% interest in the project, and the negotiation of an investment and development schedule for the project.

Comprising 100 sq. km, the Tambo Grande project hosts a volcanogenic massive sulphide deposit, which contains a near-surface resource of 42.3 million tonnes grading 2.04% copper, 1.47% zinc and 0.36% lead, plus 37.7 grams silver. Six other potential geophysical target areas have been defined on the property.