Samatosum doubles gold, silver output from startup levels

Gold and silver production at the Samatosum mine, 28 miles northeast of Kamloops, B.C., more than doubled in the January-February period, compared with the average monthly production rate since the mine’s startup in mid-1989. The mine is operated by 70% owner Minnova (TSE), while the balance is held by Rea Gold (TSE). Rea Gold also has a 5% net smelter return royalty.

Average monthly silver production jumped to more than 630,000 oz. in the first two months of 1990 from 290,212 oz. in 1989. Gold production also jumped from a monthly average of 488 oz. to 1,211 oz. in January and in February.

Base metal production also increased, although less dramatically. Zinc production jumped to 980,262 lb. each month for the first months of 1990 from 807,290 lb. in the six months of initial production in 1989. Copper production increased from 169,688 lb. to 331,396 lb., lead from 466,878 lb. to 691,060 lb. and antimony increased from 50,788 lb. to an average of 96,638 lb. per month.

Rea Gold noted that increased metal production was the result of mining in the higher-grade portions of the pit as well as through increases in milling recoveries.