Consultants for Mirage Resource (TSE) have calculated a geological resource of 5.2 million tonnes grading 6.29 grams gold and 46.23 grams silver per tonne for the Salvadoran project known as El Dorado.
Stated as a combination of measured, indicated and inferred categories, the resource is contained within three vein systems: El Dorado, Nueva Esperanza and La Coyatera North. A preliminary feasibility study, nearly complete, suggests that underground development and infill drilling is necessary in order to increase reserves to the proven level for the Dorado and Coyatera systems.
The study is assessing the economics of establishing a single processing plant capable of treating ore from an open-pit operation at Nueva Esperanza and underground operations at El Dorado and La Coyatera.
Nueva Esperanza hosts a resource estimated at 1.8 million tonnes averaging 2.98 grams gold and 19.22 grams silver, whereas El Dorado contains a geologic resource of 1.3 million tonnes grading 10.24 grams gold and 70.67 grams silver. La Coyatera North is calculated at 2.1 million tonnes grading 6.61 grams gold and 53.59 grams silver.
An agreement is in the works, which will see Kinross Gold (TSE) acquire 2 million shares of Mirage by way of a private placement at a price of $1.50 per share. Kinross holds a back-in right to 50% of the project.
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