Marlin moves forward

Vancouver With an exploitation license in hand, Glamis Gold (GLG-T) aims to start construction on its its Marlin gold project in Guatemala.

Last month, the company received the resolution approving the environmental impact assessment for the project, as well as formal approval to proceed with development by its board.

The project will be developed as a combination open-pit and underground mine with projected average annual production of 217,000 oz of gold and 3.3 million oz of silver over a 10-year mine life. Initial capital costs, including an US$11 million contingency, is estimated at US$120.3 million with production planned for the first quarter of 2006. Total cash costs are estimated at US$93 per oz net of by product silver credits with total production costs, including acquisition, estimated at US$210 per oz.

The measured and indicated resource of the Marlin project tallies 53.9 million tonnes grading 1.7 gram gold and 24.4 grams silver per tonne. A feasibility study has been completed for both an open pit operation, as well as a combined open pit and underground mine.

The open pit vision yields proven and probable reserves of 13 million tonnes grading 3.6 grams gold and 47.8 grams silver at a 1 gram gold cut off grade. The strip ratio comes in at 5.3-to-1.

The second option is more favourable, yielding proven and probable reserves of 10.9 million tonnes grading 3.5 grams gold and 45.9 grams silver, using a 1 gram cut of for the open pit and 5-gram cut off for the underground portion. The strip ratio comes in at 3.5-to-1.

“Within the space of four years, Glamis has successfully permitted three projects in Latin America," says company president, Kevin McArthur. "At El Sauzal project in Mexico, construction is progressing nicely, with production due to commence in the fourth quarter of next year. Once Marlin achieves commercial production it is expected to be the Company’s largest and most profitable gold mine. In 2004, we will re-commence step-out drilling and will begin testing other promising targets in the 2,000 square kilometer western Guatemala land package. Our goal is to develop the Marlin area into a major new gold producing district."

The Reno-based company is also seeking compensation for the market value of its Imperial gold project in California prior to imposition of the new laws placed on it. Glamis has filed a formal claim for arbitration in connection under the North American Free Trade Agreement. The company believes that its mineral property rights “have been taken without compensation.” A series of regulatory and legislative actions have blocked development of the project as planned “and as previously allowed by applicable law.