Imperial reserves rise dramatically (May 22, 1995)

Estimates for the amount of gold contained within California’s Imperial project have doubled.

Owner Glamis Gold (TSE) reports that minable reserves have risen to 89.9 million tons grading 0.017 oz. per ton, or 1.5 million contained ounces. As a result, the company’s total

minable reserves stand at 2.9 million oz.

The open-pit, heap-leach mine is expected to produce 84,000 oz.

annually over 13 years. The operating cost is projected at US$227 per oz.; the total cost, at US$312 per oz.

The deposit lies within highly fractured, oxidized gneissic rock, not unlike the host rock at Glamis’ Picacho gold mine, 8 miles to the east.

Permitting is under way and a final feasibility will be tabled in 1996.

Glamis has raised $3.3 million to advance the project, although total expenditures prior to production are expected to approach $40 million.

The company suffered a loss of $45,000 for the first quarter on revenue of $10 million. Gold production dipped 5% to 26,400 oz., compared with 27,800 oz. for the same period in 1994, while the realized price per oz. increased to US$377 from US$374.

Working capital, as of March 31, was $21 million, with long-term debt and ready cash reported to be $1.9 million and $13.2

million, respectively.