A November 1998 agreement between the two companies gave Repadre the royalty on El Limon in exchange for giving up a 1.5% royalty on the Manantial Espejo property in Argentina. A rider on the agreement provided that Repadre would get $1.25 million in cash if there had been no decision to place Manantial Espejo into production by the end of 2001. Repadre has agreed to a 2-year payment schedule instead.
El Limon produced 70,351 oz. gold in 2001 at an average cash cost of US$187 per oz.
A poor fourth quarter, with production of only 16,216 oz. at US$203 per oz., meant El Limon fell short of a budgeted 75,000 oz. at US$170 per oz. The operation’s underground fleet was not fully available during the quarter, forcing the mine to stope some lower-grade areas.
Manantial Espejo is currently operated by
Manantial Espejo has an indicated resource of 1.2 million tonnes grading 341.5 grams silver and 3.5 grams gold per tonne, with a further inferred resource of 625,000 tonnes grading 348.7 grams silver and 3.4 grams gold.
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