More gold found at La Colorada

Development drilling on the Mexican operation known as La Colorada is continuing to intercept thick zones of oxide gold mineralization.

Eldorado (TSE) is carrying out 100,000 ft. of reverse-circulation drilling in an effort to expand reserves at the La Colorada, where it operates an open-pit, heap-leach mine.

At last report, two deposits were estimated to host a proven and probable reserve of 12 million tons grading 0.041 oz. gold per ton.

Situated in Sonora state, the mine is operating at 2,400 oz. per month, which the company hopes to boost to 6,250 oz. (75,000 oz. per year). A new reserve figure should be calculated by April, and Eldorado hopes production can be stretched out over 10 years.

Production for 1995 is estimated at 30,000 to 35,000 oz. and cash costs are expected to equal the projected life-of-mine average of US$150 per oz. Drilling results are as follows (*interval bottomed in mineralization): Hole Interval Width Grade

(ft.) (ft.) (oz./ton)

ECR-76 065.6-131.2 65.6 0.048

177.1-334.6 157.4 0.098*

ECR-79 000.0-341.1 341.2 0.038

ECR-80 118.1-275.5 157.4 0.072

ECR-84 000.0-649.4 649.4 0.054*

ECR-87 000.0-19.70 19.7 0.230

019.7-314.9 295.2 0.020

ECR-88 000.0.-52.50 52.5 0.110

170.6-393.6 222.6 0.038

393.6-715.0 321.4 0.016*

ECR-92 000.0-262.4 262.4 0.027

ECR-95 000.0-669.1 669.1 0.029*

incl. 000.0-229.6 229.6 0.047

incl. 229.6-669.1 439.5 0.020

ECR-97 000.0-39.40 39.4 0.026

295.2-787.2 492.0 0.025*