Intent on becoming the largest gold producer in Costa Rica,
The company mobilized contractors in November 1998 and began shipping equipment to the site shortly afterwards. Construction began in early January on crushing facilities, the Merrill-Crowe plant and heap-leach pads.
Contractors began stripping overburden in mid-January and expect to begin loading the pads by late March. Initial production of gold and silver could begin by June.
Laguna expects to produce 10,000 oz. gold-equivalent during the remainder of 1999, with 20,000 oz. planned for 2000 and 21,600 oz. in the following year. Cash costs should fall below US$200 per oz.
The mine is in the north-central part of the country, south of Lake Arenal.
The company plans to ship gold-bearing precipitate from Rio Chiquito through to September 1999, as per an export agreement. Thereafter, the mine will produce dor.
Laguna first operated Rio Chiquito in the late 1980s, when it cranked out a total of 3,800 oz. gold and 28,600 oz. silver. The mine’s operating permit remains valid from those days, though the company received additional permits — such as for importing cyanide, and cutting trees — to begin production.
Rio Chiquito contains on overall resource of 671,000 oz. gold and 11.1 million oz. silver within 71.9 million tons grading 0.3 gram gold and 4.8 grams silver per tonne. The company has chosen to move ahead with the smaller, higher-grade portion of the deposit.
Reserves stand at 488,000 tonnes grading 3.7 grams gold and 24.8 grams silver per tonne, equivalent to 58,000 oz. gold and 390,000 oz. silver. The stripping ratio is 4.2-to-1, whereas heap leaching is expected to recover 75% of the gold and 55% of the silver.
Laguna is looking to expand minable reserves beyond the current projection of two and a half years.
Drilling is to begin on the Cascadia vein in April. Prior drilling intersected silicified breccia up to 20 metres in thickness. Hole CAS-97-12 intersected 20.8 metres of 5.1 grams gold and 86.7 grams silver, including a 12.2-metre interval of 8.2 grams gold and 302 grams silver.
Construction costs are pegged at US$5.5 million, which Laguna has raised through a US$6.5-million private placement.
“We have kept a low profile since July [when the funds were raised], while achieving everything we set out to do,” says Laguna President Stephen Stine,
In early 1998, Stine came on board as part of a new management team. He assembled a group of engineers and managers with experience in Latin American, particularly Mexico. The company has 48 employees, almost all of whom work at Rio Chiquito.
The company holds exploration concessions totalling 272 sq. km around Rio Chiquito, as well as four large properties in Panama. Laguna is actively searching for Mexican gold properties that can be quickly placed in production.
The company has 23 million shares outstanding, or 40 million fully diluted.
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