An updated reserve estimate at the Jacobina gold project in Bahia state, Brazil, has extended the planned mine life by 2 years for owner Desert Sun Mining (DSM-T)
The new proven and probable reserve figure for the project’s Joao Belo zone totals 11.1 million tonnes grading 2 grams gold per tonne, for 727,000 contained ounces of gold, based on a cutoff grade of 1.33 grams gold. That represents a 44% increase in contained ounces from the previous reserve figure tabled in Sept. 2003.
In all, reserves in the Joao Belo, Basal Reef, and Serra do Corrego zones comes to 14.4 million tonnes running 2.1 grams gold, for about 980,000 contained ounces.
The previous mine plan at Jacobina called for the mining of 10.7 million tonnes of reserves averaging 2.6 grams gold per tonne over a 7-year period. Production was pegged at 106,400 oz. per year at a cash cost of around US$189 per oz. Cumulative cash flow is forecast at US$78 million, based on a gold price of US$350 per oz.
The company will update reserve estimates for the Morro do Vento, Morro do Vento Extension (Basal/Main Reef), Canavieiras and Serra do Corrego zones as part of a ongoing mine planning and feasibility work.
At last count, measured and indicated in all of Jacobina’s zones tallied to 24.8 million tonnes grading 2.5 grams gold. Total inferred resources stand at 22.2 million tonnes of 2.6 grams gold.
Desert Sun has operating permits in hand, and expects to pour its first gold from the formerly producing mine in April.
Meanwhile, the company has launched an exploration campaign (including at least 25,000 metres of diamond drilling) around the mine, and along the northern portion of the 155-km-long Bahia gold belt, especially at Pindobacu, 50 km to the north. Previous drilling there yielded up to 21.9 metres running 5.5 grams gold.
Plans also call for 50 line-km worth of induced polarization surveying on the Pindobacu-Fumaca area. Soil geochemical surveying and mapping are underway along the entire 15-km strike length of the target area.
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