Triton attempts to expand Limon gold mine

At its 95%-owned Limon operation in Nicaragua, Triton Mining (TSE) is carrying out definition drilling to prove up a 490,000-oz. gold resource in the Santa Emilia vein system.

Four rigs will be used to drill 89,000 ft., and underground development will follow. It is the company’s intention to increase annual production to 70,000 from 50,000 oz. gold, beginning in late 1997.

The Santa Emilia vein system is east of the underground Talavera mine. Based on 60 holes drilled to date, the Santa Emilia West vein contains a measured and indicated reserve of 193,621 tonnes grading 0.22 oz. gold per ton, while an inferred resource, contained in four vein structures, is estimated at 2.4 million tons grading 0.18 oz.

The Limon produced 21,380 oz. in 1995 (cash costs are unavailable), and this year’s output is expected to reach 44,000 oz. at a projected cash cost of US$250 per oz.

Proven and probable reserves stand at 1.8 million tonnes grading 0.16 oz.

In the third quarter of 1995, a new, 1,000-ton-per-day mill replaced the 450-ton-per-day plant.

At the same time, Triton began investigating the viability of heap-leaching lower-grade ore; metallurgical test results are expected in May or June. (Toronto-listed Repadre Capital holds 5.8% of Triton’s 20.8 million outstanding shares, as well as a 5% net smelter royalty and a 6% net profits interest in Triton’s 95%-owned subsidiary, Minera de Occidente.) In the meantime, Triton is preparing to drill 66,000 ft. at the Topacio project, also in Nicaragua. More than 16,000 ft. of trenching have exposed a series of high-grade oreshoots within northeast-southwest-trending quartz veins.

The drilling will be applied chiefly to a 1,007-ft. section of the Topacio vein, which averaged 0.44 oz. across a width of 20.3 ft. Secondary targets include: a 164-ft. section of the Brazil vein, averaging 0.38 oz. across 32.8 ft.; a 1,138-ft. section of the Dos Amigos vein, averaging 0.35 oz. across 12.8 ft.; and a 197-ft. section of the Mico vein, averaging 0.6 oz. across 26.2 ft.

Sampling identified a low-grade, disseminated style of gold mineralization in the wall rocks of certain veins.

Triton can earn a 75% interest in the project.