Caledonia to expand Spanish mine

Toronto-based Kilborn Ltd. has been hired to engineer the expansion of the Filon Sur heap-leach gold mine in Spain.

Under the proposed plan, annual capacity will be expanded to 1 million from 360,000 tons. The mine is 83%-owned by Caledonia Mining (TSE). Production in 1994 is expected to total 20,300 oz. gold and 133,000 oz. silver. After the expansion, production is projected to be 64,000 oz. gold equivalent at a cost of US$136 per oz.

Meanwhile, a major drill program has been launched in an attempt to upgrade and augment reserves.

Current reserves stand at 5.3 million tons grading 0.058 oz. gold and 0.84 oz. silver per ton in the proven and probable category, and 3.3 million tons at 0.023 oz. gold and 0.84 oz. silver in the inferred class. A further 8 million tons grading 0.059 oz. gold and 0.88 oz. silver have been identified as a potential geological resource, based on historical data.