Vancouver — The strong performance of the El Sauzal mine in Mexico’s Chihuahua state boosted gold production for
Cash costs averaged US$195 per oz. in 2005, and are expected to fall to between US$160 and US$170 per oz. this year.
Until recently, El Sauzal was the largest mine in the company’s portfolio. It will soon be eclipsed by the newest mine, Marlin, which began commercial production in late 2005, and contributed about 24,000 oz. to total production.
Production also comes from the Marigold mine in Nevada, and the San Martin mine in Honduras. The Cerro Blanco project in Guatemala is at the feasibility stage and is viewed as a potential underground mine.
A full year of production at Marlin and continued growth at El Sauzal are expected to boost total production this year to about 670,000 oz. gold, which represents a 54% increase over 2005.
El Sauzal is expected to contribute 217,000 oz. gold to this total, exceeded only by Marlin, which is projected to produce 254,000 oz. in its first full year.
Glamis plans to spend about US$25 million this year on exploration, including an estimated US$15 million for feasibility and exploration costs at Cerro Blanco. At last report, the project hosted an indicated resource containing 1.27 million oz. averaging 15.7 grams gold per tonne, plus a further 670,000 oz. contained within an inferred resource averaging 15.3 grams gold.
The project also hosts 5.87 million oz. silver within an indicated resource averaging 72 grams, plus an inferred resource containing 2.59 million oz. silver, at an average grade of 59.6 grams.
Glamis Gold does not hedge its gold production.
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