Results from ongoing drilling at the Andacollo project in central Chile have Dayton Mining (TSE) predicting an increase in reserves.
The proven and probable minable figure is now estimated at 30.7 million tons grading 0.035 oz. gold per ton at a stripping ratio of 1.45-to-1. Dayton has drilled about 40,000 ft. of a 2-phase, 66,000-ft. program. A third phase of deep core drilling is also planned, to test new potential at depth. The company expects to start constructing a 14,000-ton-per-day heap-leach mine this summer, which should be in production by the fourth quarter of 1995. Financing for the US$57-million project is in place through a planned issue of 7.6 million special warrants at $4.50 each and a US$50-million bank loan. Output is projected at 125,000 oz. gold per year at a cash cost of US$172 per oz.
Recent results are as follows:
Hole Depth Width Gold
(ft.) (ft.) (oz./ton)
93003 722 164 0.030
94006 623 168 0.034
94014 331 128 0.037
94015 262 138 0.030
94017 262 227 0.059
94018 177 95 0.084
94104 1015 174 0.033
94107 387 283 0.039
94405 459 130 0.040
94411 416 91 0.043
94710 387 92 0.034
94712 492 140 0.038
94902 558 161 0.084
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