Plata prepares for production

Junior Plata Mining (PMT-A) and Chilean-based Explodesa could begin production at their Hualilan gold project in Argentina as early as spring 1999 if an ongoing feasibility study continues to produce positive results.

The company reports that trucks will be able to reach high-grade mineralization once a 500-metre tunnel into the deposit is completed later this month.

In addition, preliminary results of metallurgical testing on a 100-ton bulk sample suggest gold recovery might be in the order of 90%, though final results will not be available for a few weeks.

A positive feasibility would likely be followed by construction of an on-site plant capable of processing 300 tonnes per day.

Plata has a 35% interest in the Hualilan project, with the remainder held by Explodesa.

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