Uncertainty over the business climate, combined with the need for additional drilling, has prompted Placer Dome (TSE) to delay development of its Las Cristinas project in eastern Venezuela.
The company, which owns a 70% interest, reports that additional exploration and definition drilling are required before a mine development decision can be made.
“At the same time, given that Las Cristinas is a large and complex project, further certainty concerning the regulatory and fiscal regimes is required,” states Placer.
Placer had planned to complete a feasibility study by May 1995, but postponed completion until November. This enabled the company to relocate the proposed site facilities, as well as carry out definition drilling over an area of higher-grade mineralization in the newly discovered Achilles-Cordoba zone.
The drilling did not, however, meet expectations for a higher-grade starter pit.
Placer plans to conduct additional exploration and infill drilling to firm up its data base prior to making a production decision.
Additional exploration and infill drilling will focus on satellite areas, including East Potaso and East Conductora, as well as Mesones. The company also plans to conduct trenching on the main Conductora-Cuatro Muertos zone in an effort to gain a clearer understanding of the nature of grade controls.
“The main deposit still looks good, but if we can find a few plums around, it will give us a better cushion,” explains Hugh Leggatt, a spokesman for Placer.
Although no deadline has been set for production decision, Leggatt says year-end remains a possibility.
Placer expects to spend US$600,000 on the program to the end of the year, plus a further US$4 million in 1996.
At the end of 1994, the measured and indicated resource at Las Cristinas was estimated at 236 million tons grading 0.038 oz. gold per ton.
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