Glamis Gold (GLG-T) has poured a first gold bar at its El Sauzal mine, 250 km southwest of the city of Chihuahua, in Chihuahua State, Mexico.
The gold was poured on the last day of November. About 1,500 oz. of gold have been produced.
Commercial production using higher-grade ore has begun. Gold is being produced at a rate of 600 oz. per day and the company expects to have produced about 25,000 oz. by year-end.
As at the end of 2002 El Sauzal had proven and probable reserves of 20.5 million tons grading 0.098 oz. gold per ton, (18.6 million tonnes at 3.36 grams gold) or 2 million contained oz. This was estimated using a gold price of US$300 per oz.
El Sauzal is an open pit operation with two pits (the east and west) currently being mined. Ore grade is averaging 3.55 grams gold per tonne (10% better than predicted). There is a conventional 5,500-tonne-per-day oxide mill; recovery is better than 93%.
The company expects to produce 170,000 oz. next year.
Cash costs have been estimated at US$110 per oz.
In September a new zone was drilled, just west of the current mine area. Highlighting this drilling was a hole that cut 29 metres grading 3.12 grams gold per tonne from surface. Another three holes cut 6-21 metres grading 1.2-3.56 grams gold.
The 10-sq.-km property is 65 km northeast of the city of Chiox, Sinaloa State
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