LATIN AMERICA SPECIAL — Construction under way at

Pre-production work began early this year at the Moris heap-leach gold project in Chihuahua state, owner Manhattan Minerals (VSE) reports.

The Vancouver-based junior is constructing an open-pit operation based on minable reserves of 4.7 million tons grading 0.062 oz. gold per ton, sufficient for an 8-year mine life. The deposit is described as an epithermal, chalcedony quartz-stockwork vein system.

The mine is expected to produce 28,000 oz. gold and 100,000 oz. silver annually from finely crushed and agglomerated ore stacked in three sequential, 8-metre- high heaps. Gold recovery of 75% and silver recovery of 50% is expected over a 60-day leach cycle.

Manhattan was expecting to begin pouring gold late in the third quarter of 1995. But the filing of certain documentation (related to the financing package and other matters) with the Mexican government is taking longer than expected, and as a result, production is now expected to start during the fourth quarter of this year.

Work taking place on site includes earthworks for the ore

stockpile/maintenance shop; crushing, office and processing plant areas; and leach-pad areas.

Development and construction costs to date have been below the estimated construction capital budget of US$9.6 million, which includes working capital and contingency.

Michael Mallard, vice-president of corporate development, projects that the capital cost will be about US$8 million, well below the original projection of US$12 million, because of a decision to lease, rather than buy, mining equipment.

All final engineering drawings are complete and have been sent to a variety of supply companies for fabrication of the crushing/conveying components and construction of the process plant (carbon adsorption).

The Moris project is in the eastern foothills of the Santa Maria Valley, near the town of Moris. It is accessible by road and by air, and has a good water supply from the Santa Maria River.

Manhattan has rights to a 100% interest in the Moris project, subject to a 20% net profits interest to the underlying vendor (after payback of capital costs).

The junior has several other gold projects in Mexico, including El Promontorio, a copper-gold-silver skarn zone in Sinaloa state; Montosa, a gold property in Chihuahua state; and La Guitarra, a gold-silver project, also in Chihuahua.

“We had to put those on hold a bit because we’ve been concentrating on getting Moris into production,” said Michael Mallard, Manhattan’s vice-president of corporate development.