LATIN AMERICA — Production up at Velardena

Development at the Velardena mine of Ecu Gold Mining (ECU-M) continues apace, with the mill processing stockpiled ore.

Throughput in the second quarter was 29,996 tonnes, up from 17,184 tonnes in the first quarter. Millhead grade ran an average 0.78 gram gold and 112 grams silver per tonne and the operation recovered 459 oz. gold and 65,937 oz. silver. Second-quarter revenue was $813,999, up from $481,976 in the previous 3-month period.

Financing for the expansion of the Velardena mill is being arranged. Ecu plans to add a flotation circuit and ship concentrates to allow base metals to be recovered. The final capacity of 600 tonnes per day should be reached in March 1999.

Underground, one shaft is being deepened and should be complete by August, with another two slated for deepening. Additional workings are being driven to improve access to the ore. The equipment fleet is also being updated.

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