Crystallex to bid on mine

Orphaned by the bankruptcy of Rea Gold, the San Gregorio mine in northern Uruguay has attracted the attention of Crystallex International (KRY-T).

Crystallex announced it has “established the principles of agreement” with the subsidiary of Standard Bank London that now holds title to the mine. Crystallex reported that it had been designated the preferred buyer of San Gregorio and was completing due-diligence investigations with the intention of closing the purchase in September.

San Gregorio produces about 70,000 oz. of gold annually and had a reserve of 5 million tonnes grading 2.6 grams gold per tonne when it started production at the end of January 1997. The mill has a capacity of 2,500 tonnes per day, and cash production costs have held around US$220 per oz.