Glamis sees higher production in 2000

By fully integrating the three mines it acquired from its recent merger with Rayrock Resources, as well as additional production from the new San Martin mine in Honduras, Glamis Gold (GLG-N) expects to produce 234,000 oz. at a cash operating cost of US$200 per oz. next year, compared with 180,000 oz. at US$214 in 1999.

Improvement are also forecast for the company’s 67%-owned Marigold mine in Nevada, where the annual mining rate is projected to rise by almost 20% to 14.3 million tons and cash costs are expected to fall to US$203 per oz. The company’s share of production for next year is pegged at 47,000 oz.

Meanwhile, Glamis has decided to scale down its open-pit project at the Dee mine, also in Nevada. An estimated 14,000 oz. will be mined from a small pit, while 40,000 oz. will be recovered by extending the Dee underground program to the south, eliminating the need to mine 7.6 million tons of waste material.

The company expects fourth-quarter production at Dee to be 4,000 oz. lower than anticipated, owing to delays and lower development rates. The production target for 2000 is 69,000 oz. at US$251 per oz.

The picture is brighter at the Rand mine in California, where mining costs have fallen to US49 cents from US56 cents per ton as a result of higher mining rates and shorter hauling distances.

Farther afield, in south-central Honduras, Glamis is preparing to begin construction at its US$27-million San Martin open-pit mine. Initial production is expected in the second half of 2000, with Glamis to receive 14,000 oz. for the year.

At full operation, the mine will contribute 80,000 oz. annually at cash costs of US$149 per oz. Reserves stand at 1.08 million oz. gold within 39.3 million tonnes averaging 0.86 gram gold.