Vancouver — Both Placer Dome (PDG-T) and Australian-based MIM have submitted bids to take control of the large Pueblo Viejo gold property in the Dominican Republic.
Pueblo Viejo is one of the largest gold deposits in the world. It hosts an estimated 6 million tonnes grading 2.22 grams gold and 5.67 grams silver per tonne, plus 0.81% copper.
Owned and operated by the Dominican government, the property is believed to host an undeveloped sulphide resource of more than 200 million tonnes at an average grade of about 3 grams gold per tonne.
Rosario Resources began open-pit mining of the oxidized portion of the deposit in 1975, processing the ore in a cyanidation mill. In 1979, the government nationalized the mine. Full-scale mining continued until 1993, when virtually all the oxide and transitional ore reserves had been depleted.
It is estimated that, from 1975 to 1993, more than 50 million tonnes averaging 4 grams gold and 20 grams silver were mined.
Pueblo Viejo occurs in the upper part of the Los Ranchos formation, a laminated carbonaceous siltstone and sandstone with local conglomerate layers grading downward into a diatreme breccia. The gold-silver mineralization forms in funnel-shaped, graphite-rich siliceous zones, with sulphides consisting predominately of pyrite and localized sphalerite and enargite.
The system was originally thought to mark a maar-diatreme complex, but it is now regarded as a near-vent volcanic breccia.
In an attempt to kick-start gold production in the Dominican Republic, the government put the 25-year concession to operate the mine out to tender. Seven major mining companies reportedly took a look at the project. Only two submitted bids.
The offers are undergoing technical and financial merits. The winner is due to be announced on July 18.
Be the first to comment on "Placer eyes Pueblo Viejo"