Eldorado completes earn-in

A feasibility study for La Trinidad, a gold project in Mexico’s Sinaloa state, has been delivered to Almaden Resources (VSE).

The study was the final requirement for Eldorado (TSE) to earn a 51% interest in the project. Almaden retains 49%.

Eldorado is expected to comment on the study once details of a planned financing are worked out. Under the earn-in agreement, Eldorado is responsible for arranging production financing.

In preparing the study, Eldorado focused on the Taunas and Colinas zones, which host a minable resource of 2.8 million tons averaging 0.062 oz. gold per ton, at a stripping ratio of 1.5-to-1.

The capital cost of mining, by open-pit methods, 540,000 tons per year is estimated at US$6 million. Annual gold output is projected at between 20,000 and 30,000 oz. at a cash operating cost of US$218 per oz.

The feasibility study indicates that capital costs can be paid back in about 15 months, with gold at the US$380-per-oz. level.

The bulk of the minable resource is contained within the Taunas zone, outlined at 2.3 million tons grading 0.065 oz. The planned pit is projected to have a mine life of 4.5 years.

The nearby Colinas zone, 1,300 ft. south of the Taunas, is partially outlined, with a minable resource of 460,000 tons averaging 0.050 oz. The zone remains open in several directions. The 70-sq. mile project is believed to offer excellent potential for expanding the reserve base.

With a final production decision imminent, Almaden anticipates startup will occur in the second quarter of 1996. Final operating permits have been received.

Almaden has about 7 million shares outstanding.