Stepout drilling at La Colorada, a mine property east of Hermosillo in Sonora state, Mexico, continues to return wide intersections of oxide gold mineralization.
Eldorado (TSE) owns and operates an open-pit, heap-leach gold mine at the property and is in the process of expanding reserves. Proven and probable reserves in the Creston and Gran Central deposits combined were last estimated at 12 million tons grading 0.041 oz. per ton.
Drilling recently returned several wide intervals on the Creston zone, including a 748-ft. intersection grading 0.044 oz.; a 656-ft. interval grading 0.052 oz.; a 499-ft. intersection grading 0.038 oz.; and a 472-ft. intersection grading 0.04 oz.
Eldorado expects to complete a new reserve estimate by April. The mine is expected to yield 30,000-35,000 oz. this year at a cash cost equivalent to the projected life-of-mine average of US$150 per oz.
The company hopes to boost annual production to 75,000 oz.
Eldorado has other advanced gold projects in Mexico, and is also involved in an exploration venture in Argentina.
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