Vancouver — The results from a bulk mining and leaching test on the California gold zone have prompted Alamos Minerals (AAS-V) to stop exploring Zaruma Resource’s (ZMR-T) San Antonio property in Mexico.
The bulk test determined that the tonnages and grades were less than expected for open-pit mining. It also indicated that the minerals containing the ore show characteristics that hinder heap-leaching. Based on the study, Alamos says the cost of placing the project into commercial production is beyond its capabilities.
Under an agreement reached in 1999, Alamos could earn a 35% stake in the property by completing a production-scale metallurgical test on San Antonio ores. A further 35% interest could have been earned by spending US$4 million by 2004.
The San Antonio concession holds a 15-km-long structural zone that hosts a number of economically significant gold and copper occurrences. More than 250 drill holes have tested the property.
San Antonio’s resources include the California gold zone and the Luz del Cobre copper deposit.
Zaruma intends to continue with enhanced heap-leach testing. It will also launch a drill program aimed at upgrading the resources to reserves.
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