Eastmaque to expand production at Cargo Muchacho

The heap leach operation is part of the company’s 100%-owned Cargo Muchacho gold project in southern California, about 20 miles northwest of Yuma, Ariz.

Eastmaque is already producing about 2,000 oz of gold per month at Cargo Muchacho from its Padre Madre pit, but production at this operation will be reduced gradually as the new pit comes on stream.

According to Lukas Lundin, president, pre-stripping of the American Girl orebody is already in progress. The new pit is targeted to reach a production rate of 3,500 oz gold per month by the end of the year.

Eastmaque had intended to bring on stream an underground mine and 500-ton-per-day mill on the Cargo Muchacho property at the same time as the new pit. This plan was deferred to minimize any possible start-up problems during this phase.

Instead, mill construction will begin in September with start-up scheduled for April, 1990. Eastmaque said the new mill should reach its design capacity within three or four months of start-up and will add about 3,000 oz of gold each month to the Cargo Muchacho output.

The company forecasts that production from Cargo Muchacho and from its tailings operation in Kirkland Lake, Ont., will reach 72,000 oz of gold in fiscal 1989/1990, and 95,000 oz the following year. Lundin said these operations should remain profitable despite declining gold prices.

The company produced 8,847 oz at Cargo Muchacho and 9,153 oz at Kirkland Lake during the period July 1 to December 31, 1988, and is expecting to produce 35,558 oz in its fiscal year ending June 30, 1989.

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