Vancouver-based junior Consolidated Keld’Or Resources (VSE) has signed an agreement to earn from USA Gold a 50% interest in the El Recio gold deposit in Costa Rica.
USA Gold, a private company, recently acquired an interest in the project from property-owner Greenstone Resources (TSE).
Under the agreement, Consolidated Keld’Or will operate and develop the property which contains epithermal gold-silver deposits amenable to both open-pit and underground mining.
Underground reserves include the Santa Ana deposit, with more than 275,000 tons grading 0.23 oz. gold per ton, and the Palo Negro deposit containing 50,000 tons at 0.3 oz. gold.
Low-grade open-pit reserves total 725,000 tons at 0.05 oz. gold and include 75,000 tons at 0.15 oz. gold.
Mining is expected to start in late 1994 at 120 tons per day. Initial production is forecast at more than 8,500 oz. gold annually. The ore will be processed by a conventional carbon-in-pulp process. Consolidated Keld’Or is also considering a parallel heap-leach circuit for low-grade ore. Metallurgical tests and pre-feasibility studies indicate gold recoveries of more than 90% with cash costs estimated to be under US$190 per oz. Consolidated Keld’Or also plans to spend $250,000 exploring additional targets on the El Recio property.
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