MEXICO AND CENTRAL AMERICA — All systems go at Laminco’s San Antonio project in Sonora

Heartened by the positive results of a prefeasibility study, Laminco Resources (LMR-T) is gearing up for underground exploration at its San Antonio gold property in Mexico’s Sonora state.

The Vancouver-based junior commissioned Micon International to review existing resources and recommend production strategies.

About US$8 million has been spent exploring the property. Micon calculates a drill-indicated, minable resource of 530,000 oz. contained in three of several known gold deposits; California, Golfo de Oro and Cerro Sapuche.

Laminco President Edwin Morrow notes that these ounces are contained in 5.8 million tons at an average grade of 2.84 grams gold per tonne, minable by a combination of open-pit and underground methods. The figures, he adds, represent gold resources in only part of the western portion of the property.

The Micon calculation includes open-pit, heap-leachable resources of 2.1 million tonnes grading 1.98 grams gold, plus an underground resource of 1.1 million tonnes grading 4.26 grams.

Laminco estimates that, based on projections from randomly spaced holes east and west on the Realito trend, there are an additional 500,000 contained ounces distributed in nine other deposits on the property.

Also, several less-advanced gold showings (not included in the study) could provide additional resources.

Micon will continue working the property, including 700 metres of drilling and declines for underground exploration, sampling and drill access at Golfo Oro, plus underground and surface infill and expansion drilling. It also recommends that ongoing exploration should test other gold targets and known occurrences on the property. Metallurgical test work and environmental base-line work were also proposed.

Laminco expects this work will form the basis of a final feasibility study.

The underground program will begin early next year, though metallurgical tests are already under way. Assuming all goes as planned, Laminco envisions that initial, open-pit production could start in late 1997.

Micon also reviewed Laminco’s Luz del Cobre copper reserves, as well as feasibility studies previously conducted on them, and concluded that 10.2 million tons of 0.875% copper “is a viable, stand-alone project at a copper price of 90 cents per lb.”