Glencairn reduces cyanide at Bellavista

Vancouver — Since the recent ground movement and subsequent suspension of operations at Glencairn Gold’s (GGG-T, GLE-X) Bellavista mine in Costa Rica, the company has been rinsing the heap-leach pads to reduce cyanide levels and mitigate any environmental risk should the movement cause the liners to tear.

The company says cyanide concentrations “are now at acceptable levels that pose no threat to the environment.” Glencairn has tested solutions discharged from the heap and solids within it, with results confirmed by independent labs.

Rainfall in the Miramar region of Costa Rica, where the Bellavista gold mine is located, continues to be very heavy and has caused further surface erosion in areas around the mine. The company is trying to reduce erosion with protective tarps and by reinforcing and filling eroded areas.

Glencairn says that “the deep-seated ground creep is continuing in certain areas of the mine site.” However, the pit and the area around the processing circuits have not been affected by ground movement.

If a cost-effective remedy to the ground movement issue cannot be found or permits required for remediation are not granted, Glencairn says operations at Bellavista could remain on hold indefinitely.

In July, operations at the mine were suspended after ground movements of about one centimetre per day were recorded in sections of the leach pad and waste pile at the open-pit operation. The issue is thought to be related to water saturation caused by much higher than normal rainfall over the past several years.

Cracks in the stacked ore were first noticed in May and were monitored through June and July. The pad is about 400 by 400 metres, with the ore stacked up to about 90 metres.

Glencairn undertook remedial measures including dewatering wells, control of surface water and redistribution of weight loads on the leach pad.

The company recorded 2006 gold sales of 38,830 oz. from Bellavista at a realized price of US$595 per oz. Cash operating costs at the mine came in at US$316 per oz.

Bellavista proven and probable reserves, as of the end of 2006, stood at 7.9 million tonnes grading 1.44 grams gold per tonne using a 0.5-gram gold cutoff grade.

Glencairn shares have slumped to an all-time low of about 15 apiece due to problems at Bellavista.

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