Triton boosts reserves at Nicaraguan mine

Toronto-listed Triton Mining has announced a 58% increase in reserves at the Limon gold mine in Nicaragua.

Proven and probable minable reserves have risen to 375,700 oz. from 238,000 oz. and are derived from three separate sources: two open-pit deposits adjacent to the plant, and the underground Talavera mine 2.5 miles to the west. The South pit and the Talavera mine are currently in operation. The North and South pit deposits are vein structures with high-grade stringers, previously mined by underground methods. Talavera features two sub-parallel vein structures with thicknesses in the range of 10 to 23 ft. The veins contain various banded and resilicified breccia fabrics, which indicates a long history of vein formation. Gold occurs with both the banded quartz and silicified breccia. The dominant ore mineral in the Talavera quartz is pyrite, or its oxidized equivalent. Small amounts of chalcopyrite, sphalerite, arsenopyrite, altaite, gold tellurides and native gold also occur. As a result of the increase in reserves, the planned mill expansion has been increased to 1,000 from 750 tons per day (tpd). The new mill, which is expected to cost US$6.25 million, will replace the aging, 50-year old facility that currently operates at a rate of 450 tpd. The expected completion date is June, 1995.

Annual gold output is poised to increase by 26,000 oz. to 50,000 oz., and cash operating costs are expected to drop to US$180 from US$240 per oz. To process ore from the Tajo Central pit, Triton plans to build a small heap-leach facility with the capacity to produce 10,000-12,000 oz. per year. The Limon concession also hosts the past-producing La India mine, which contains probable and possible drill-indicated reserves of 8.7 million tons at 0.27 oz. gold per ton. The property also contains several other gold occurrences, with a total indicated resource of 1.5 million oz. With such a substantial reserve base, Triton Vice-president Bradley Marchant believes it will be possible to undertake another operation in the near future. “Within the next 2-3 years, 100,000 oz. in annual production at the Limon property is quite reasonable,” Marchant told The Northern Miner. Triton can earn a 100% interest in the Limon mine by paying US$3.8 million over three years. This interest is subject to a 5% net profits interest (NPI) royalty held by the mine workers. In addition, Repadre Capital (TSE) holds a 5% net smelter return royalty and a 6% NPI royalty in Triton’s gold interests in Nicaragua. Repadre also has a 28% equity interest in Triton. Elsewhere in Nicaragua, Triton can acquire the Topacio gold project. In Argentina, the company has a joint venture on nine exploration projects.