With one mine under construction in Nicaragua, Greenstone Resources (GRE-T) has announced plans to acquire another major project in the Cental American country.
The company is constructing the Cerro Mojon mine, which will replace the Santa Rosa mine (also owned by Greenstone) as the largest mine in Central America.
A 1995 feasibility study for Cerro Mojon indicated minable reserves of 630,000 oz. gold., based on a 1.5-million-tonne-per-year, open-pit, heap-leach operation. Annual production is expected to average 88,000 oz.
gold.
Infill drilling is continuing at Cerro Mojon, with the latest results including 4.56 grams gold over 9.1 metres in hole 73, and 1.17 grams over 27.5 metres in hole 72.
New reserve calculations are expected shortly.
Greenstone’s Central American holdings were expanded by a recent agreement to acquire the Bonanza-Siuna-Rosita concessions in northeastern Nicaragua. The concessions total 5,184 sq. km and include the Bonanza gold mine and two former base metal producers.
The company plans to increase annual gold production at Bonanza to 36,000 oz.
by making an increased capital expenditure of US$6.6 million.
The agreement gives Greenstone an 80% interest in Hemco-Nicaragua in exchange for US$3 million, 45,000 Greenstone common shares and 450,000 warrants, with an option to acquire the remaining 20% interest. The acquisition will be financed from the $34.5-million equity financing raised earlier this year.
This acquisition puts the company on track to expand reserves in Central America. Exploration drilling is continuing at Greenstone’s Libertad concessions, with two new discoveries reported. One, called Crimea, is described as the second major structure within the Cerro Mojon corridor. The second, Santa Maria, is speculated to be a possible new mineralized corridor, immediately south of Cerro Mojon.
Drill results from hole 2 at the Crimea target included 1.87 grams gold over 48.8 metres.
The first hole testing the Santa Maria returned 2 grams gold over 33.5 metres.
Ongoing work will focus on the 8 km of mineralization along the southwestern segment of the Cerro Mojon corridor to Chamorro in the east.
Greenstone operates the Santa Rosa mine in Panama and recently completed a feasibility study for the San Andres gold project in Honduras.
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