Proceeds of $552,000 received by Eldorado (VSE) from an initial public offering will be combined with revenue from gold sales to further advance the La Colorada gold project near Hermosillo, Mexico.
Eldorado can earn a 70% interest by placing La Colorada into commercial production. It also has an option to buy the remaining 30% interest from Toronto-based Campbell Resources (TSE).
A feasibility study is in progress, to be completed in conjunction with an Environment Impact Study which will enable the company to apply for mining permits early in 1993.
Since September, 1992, a pilot-scale heap-leach operation has produced more than 1,000 oz. gold, and generated a database to be used in the feasibility study. Initial reserves of 4.9 million tons grading 0.037 oz. gold per ton (and 1.3 million tons of tailings grading 0.023 oz. gold) have been outlined to date. A 1,500-ft. program of infill drilling is being completed for the purpose of detailed mine planning.
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