Gold pour at El Sauzal

Glamis Gold (GLG-T) has poured a first gold bar at its El Sauzal mine, 250 km southwest of the Mexican city of Chihuahua.

About 1,500 oz. of gold had been produced by early December.

Commercial production using higher-grade ore has begun. The company is turning out 600 oz. gold per day and expects to have produced about 25,000 oz. by the end of 2004.

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 per tonne), or 2 million oz. This was estimated using a gold price of US$300 per oz.

Two pits, the east and west, are 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, and recovery is better than 93%.

The company expects to produce 170,000 oz. next year at a cash cost of US$110 per oz.

In September, a new zone was drilled, just west of the current mine area. One hole intersected 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.

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