Vannessa eyes Crucitas construction (March 25, 2002)

Vancouver-based Vannessa Ventures (vvv-v) has submitted an environmental impact study (EIS) for the Crucitas gold project in Costa Rica. Approval of the study by that country’s government is required before construction can begin.

In late January, the government granted Vannessa an exploitation permit for the near-surface gold-bearing saprolite material. Initially, the company plans to mine the near-surface resource at the annual rate of 80,000 oz. The construction cost of this initial phase is pegged at US$27 million.

The near-surface measured and indicated resource is estimated at 10.3 million tonnes grading 2.2 grams gold per tonne. The inferred resource is about 3 million tonnes at 1.9 grams gold. All the resources are based on a cutoff grade of 0.8 gram gold per tonne.

The saprolite material extends to 60 metres in places but has an average depth of 21 metres. The topography at Crucitas — essentially two hills — offers a low stripping ratio.

Metallurgical tests by previous owners Placer Dome (pdg-t) and (now defunct) Lyon Lake Mines show that direct cyanidation can yield recoveries of 92%. Further metallurgical tests are planned.

A scoping study by BGC Engineering indicates that the operation would be economic at today’s gold prices, with an operating cash cost of about US$130 per oz.

Vannessa says it is reviewing term sheets from several banks and other financial institutions interested in financing the project.

Crucitas also hosts a gold-bearing hard-rock resource, bringing the total measured and indicated gold resource to 29.6 million tonnes grading 1.5 grams gold and 3.4 grams silver, and the total inferred resource to 10.1 million tonnes of 1.6 grams gold and 2.9 grams silver.

An additional inferred resource 12 km to the southeast, at the Conchudita concession, is pegged at 3.2 million tonnes of 4.6 grams gold.

The combined resource estimate is based on US$34 million worth of exploration and development work, mostly by Placer, including more than 31,000 gold assays from 385 diamond and auger drill holes for more than 36,000 metres.

Vannessa says there is excellent potential to increase both the saprolite and sulphide resources in six relatively large areas (measuring up to 200 metres by 1.5 km) based on high-grade soil geochemical anomalies, radiometrics, and the presence of mineralized silicified quartz and rhyolite fragments.

Vannessa acquired Crucitas from Lyon Lake Mines in May 2000. The purchase price came to $25,000 in cash plus 250,000 shares. Vannessa also assumed about $500,000 in payables from Lyon Lake’s books.