Low gold prices have forced
The Toronto-based company had planned to begin production in March, having already completed the leach pad, process ponds, access road and other infrastructure. Construction of the gold recovery plant and ore-stacking system are under way; however, all remaining work has been postponed until at least the third quarter.
Reserves at Vueltas del Rio stand at 5.1 million tonnes grading 2.51 grams gold per tonne. The company had expected to produce 40,000 oz. by the end of 2000, thereafter churning out an average of 60,000 oz. yearly at a cash cost of US$169 per oz.
Geomaque has retained Loewen, Ondattje, McCutcheon for financial advice. All options will be considered, including a joint venture, to complete construction as soon as possible.
Meanwhile, Geomaque has announced poor fourth-quarter results from the San Francisco mine, in Mexico’s Sonora state. The mine produced 14,000 oz. during the period, and, although this raised annual output to a record 65,000 oz. (10% more than 1998), costs exceeded revenue as low gold prices and high Mexican inflation took their toll.
A new mine plan calls for a total of 1.6 million tonnes grading 1.17 grams gold to be mined over the next six months from the Francisco pit and from the new Chicharra zone, 1.5 km to the west.
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