Wracked by civil unrest until three years ago, Nicaragua has embraced the mood of Latin America. The doors are open to foreign investment and privatization is in.
The operating, 150-ton-per-day (tpd), La Libertad gold mine was one of the nationalized operations on the block and Greenstone Resources (TSE) won the bidding.
To date, Greenstone is the first Canadian company to move into Nicaragua. The company has a 37.5% interest in the property. Nica Mines, a Nicaraguan company, owns 37.5% and the remaining 25% is held by a company representing the workers.
The underground mine originally worked a network of narrow, relatively high-grade quartz veins and stockworks. It has operated on a small scale since the early 1900s. In places, the deepest workings reach to 450 ft. below surface. A few years ago the government decided to suspend underground production and move exclusively to open-pit working.
Greenstone plans to expand open pitting and increase production to 2,200 tpd. This tonnage may be treated entirely by milling or a portion may be milled with lower-grade ore being heap leached. Feasibility studies are now under way. A report is expected by the fall of this year.
Capital requirements are tentatively estimated at up to US$12 million, US$7 million by debt and the remainder by equity. In the meantime, present mill capacity is to be increased to 200-250 tpd.
Drilling carried out in 1986 indicated 4.6 million tons grading 0.14 oz. gold per ton to a depth of 130 ft. Overall geological reserves are quoted by the company at 9.7 million tons grading 0.12 oz.
Elsewhere on the large property, there is the potential for reserves of a similar order.
Be the first to comment on "LATIN AMERICA SPECIAL — Greenstone makes plans for La"