Vancouver – A newly completed, 18-month-long definition drilling program has boosted resources at the El Dorado gold-silver project in El Salvador. With an estimated 1.2 million gold-equivalent oz. in hand, Pacific Rim Mining (PMU-T, PMU-X) believes existing resources will support an expanded operation with higher production than initially envisioned in an early 2005 pre-feasibility study.
The pre-feasibility study examined a proposed 750-tonne-per-day underground mine that would produce an average of 80,497 gold-equivalent oz. annually, for at least 6.2 years. Capital costs were estimated at U$66.9 million.
Pacific Rim has launched a full feasibility for a larger operation, with the study slated for completion by year-end. Annual production is expected to be “significantly higher” than previously envisioned, while maintaining cash costs at about US$163 per oz. In the meantime, the company will continue to test high-grade drill targets developed during the past year at the property, and also explore its other projects in Central and South America.
Recent definition drilling at El Dorado was largely focused on the South Minita deposit, which presently hosts an indicated resource of 1.07 million tonnes grading 9.25 grams gold and 63.99 grams silver per tonne, plus a further 302,800 tonnes at similar grades in the inferred category. The nearby Minita deposit hosts a slightly larger measured and indicated resource of 1.78 million tonnes grading 10.53 grams gold and 65.86 grams silver.
The Minita and South Minita deposits, combined with the smaller Coyotera and Nueva Esperanza deposits, host total measured and indicated resources of 3.7 million tonnes at 9.35 grams gold and 62.24 grams silver, containing 1.1 million oz. gold and 7.4 million oz. silver. Alternatively, these resources contain 1.22 million gold-equivalent oz., with an average gold-equivalent grade of 10.24 gram, using a silver-to-gold ratio of 70:1.
Based on the 2005 pre-feasibility study, the portion of El Dorado resources previously converted to reserves stands at 1.6 million tonnes grading 9.51 grams gold and 60.82 grams silver, or 535,586 gold-equivalent oz. This estimate complies with National Instrument 43-101 disclosure standards, but is not compliant with U.S. Securities and Exchange Commission Industry Guide 7, which requires a final or bankable feasibility study for reserve disclosure.
The road-accessible El Dorado property is situated about 65 km from San Salvador, the capital city of El Salvador.
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