Triton poised for recovery at Limon

Operating problems at the Limon gold mine in Nicaragua took their toll on Triton Mining (TTM-T) in the first quarter.

The company lost $1.1 million (or 6 cents per share) on revenue of just under $4.8 million.

Revisions to the underground mine plan and modifications to the new 1,000-ton-per-day mill resulted in low throughput and recoveries. The mine yielded 8,682 oz. gold in the period, at a cash cost of US$364 per oz.

Lower operating costs are projected for the second quarter, and, for the year, the Limon is expected to crank out 44,000 oz. at a cash cost of US$250 per oz.

Meanwhile, exploration drilling is attempting to expand proven and probable reserves, which currently stand at 1.7 million tonnes grading 5.3 grams gold per tonne.

Drilling on the Santa Emilia West vein, 400 metres east of the Talavera mine portal, has defined an undiluted, measured and indicated resource of 179,806 tonnes grading 7.88 grams, plus an inferred resource of 37,710 tonnes grading 7.13 grams. The vein, with a true width averaging 3.6 metres, remains open along strike and to depth.

Within the Santa Emilia project area, exploration of a 400-500-metre-long gap between the Talavera II gold-bearing structure and Santa Emilia mineralized veins has confirmed the northeastern extension of Talavera II, with the identification of the Ligia vein.

The vein averages a true thickness of 6.4 metres with a grade of 5.05 grams, though drilling on the southwestern end encountered true widths of 16.3 metres grading 6.27 grams and 18.2 metres, for which assay results remain pending. The vertically dipping vein is traced over strike length of 400 metres and a downdip length of 100 metres, and remains open.

Talavera II

Meanwhile, drilling on the western extension of the Talavera II structure has confirmed its continuation 200 metres beyond a fault that defines the western limits of the underground Talavera mining operation. Eleven holes returned a grade averaging 7.9 grams over a width of 2.8 metres.

Grid drilling on a 400-metre strike length of the Veta Nueva vein indicates the 3.6-metre-wide vein averages a grade of 8.87 grams. The vein, which has been traced to a depth of 200 metres below surface, is open to the southwest and at depth. Triton believes Veta Nueva may extend a further 300 metres and link up with the past-producing Atravasada vein, which averaged a gold grade of 9.4 grams.

Drilling 50 metres beneath the old workings at Atravasada confirms that economic gold grades exist over a minimum strike length of 300 metres.

The Santa Emilia South structure was tested with seven drill holes, which encountered narrow true widths, including 0.29 metre of 5.04 grams, 2 metres of 2.08 grams and 0.76 metre of 22.63 grams.

Reserve definition drilling is continuing on the Ligia, Veta Nueva and Talavera West veins, as well as at the Tigra prospect (immediately north of the Limon North pit) and at depth in the Talavera mine.

The viability of heap-leaching lower-grade ore is being examined by Triton.

At the Rincon de Garcia project, several column leach tests indicate the potential for a 75% gold recovery.

Elsewhere, at the Topacio project in southeastern Nicaragua, two drill rigs have, to date, drilled 19 of a planned 200 holes. More than 5,000 metres of trenching at the project have identified a series of high-grade gold oreshoots in several veins.