Coldspring starts Costa Rica production

Gold production started late in October at Coldspring Resources’ placer gold mine in the Osa area of Costa Rica.

The company is processing 1,000 yd per day and expects to double this by spring. Gold output in 1988 will be around 6,500 oz. Reserves are estimated at 1.7 million cu yd averaging 0.029 oz gold per cu yd and anticipated recovery costs are less than $4 per cu yd, the company says.

Tests showed the best gold values are found in a large boulder layer and Coldspring is shipping a high capacity washing and screening trommel from the Yukon to Costa Rica to process the bedrock material. About $2.25 million has been spent so far on bringing the property to production.

Elsewhere in Costa Rica, Coldspring has a 50% interest in the Tisingal Lode prospect. From a drift in the Cajeta zone, 48 samples averaged 0.627 oz gold per ton. A 20-ton-per-day pilot mill is on site and exploration will continue in 1988.

In the Yukon, the company has an agreement with Wolverine Mines to manage its 10 miles of placer leases on Indian River. Coldspring retains a 10% to 15% sliding scale gross production royalty.

A 50% interest is held in the Golden Star gold tailing project east of Fort Frances, Ont., where sand size tailings containing gold-bearing pyrite and free gold are located at the edge of Bad Vermillion Lake. They come from the former Golden Star mine and contain a proven 37,500 tons to 75,000 tons probable, averaging 0.16 oz gold. A 150-ton-per-day mill is on site and Coldspring hopes to start processing the tailings in 1988.