Vannessa eyes Crucitas construction (March 19, 2002)

Vancouver-based Vannessa Ventures (VVV-V) has submitted to the government of Costa Rica, an environmental impact study (EIS) for the Crucitas gold project in Costa Rica.

Approval of the EIS is the final essential ingredient required to allow for the construction of the mine, and is expected later this year.

In late January, the government granted Vannessa an exploitation permit for the near-surface gold-bearing saprolite material at Crucitas.

Vannessa’s plans for Crucitas are more modest than those of previous owners Placer Dome (PDG-T) and now-defunct Lyon Lake Mines.

Vannessa’s plan is to initially mine the near-surface gold-bearing saprolite resources at an estimated rate of 80,000 oz. annually. The price tag for construction to allow for the initial phase of mining is US$27 million. At last report, an independent resource estimate of Crucitas’ near-surface measured and indicated resource stood at 10.3 million tonnes grading 2.2 grams gold per tonne. Another 3 million tonnes running 1.9 grams gold are classified as inferred resources. All the resources are based on a 0.8-gram cutoff.

The saprolite material extends to 60 metres in places but appears to have an average depth around 21 metres. The topography at Crucitas — essentially two hills — offers a low stripping ratio.

Metallurgical tests by Placer and Lyon Lake show that direct cyanidation can yield recoveries of around 92%; Vannessa plans further metallurgical tests to get a handle on the response of the mineralization in the saprolite zone.

A scoping study focussing on the mining of the saprolite material by Vancouver’s’ BGC Engineering indicates that the operation would be economic at today’s gold prices, with an estimated operating cash cost is US$130 per oz.

Vannessa is currently reviewing term sheets from several banks and other financial institutions interested in financing the project.

Crucitas is also host to a gold-bearing hard rock resource, which we included brings the project’s total measured and indicated gold resource to 29.6 million tonnes running 1.5 grams gold and 3.4 grams silver. Total inferred resources climb to 10.1 million tonnes of 1.6 grams gold and 2.9 grams silver.

Additional inferred resources about 12 km to the southeast at the Conchudita concession total 3.2 million tonnes of 4.6 grams gold. The combined resource estimate is based on US$34 million worth of exploration and development work mostly by Placer, including more than 31,000 gold assays from 385 diamond and auger drill holes for more than 36,000 metres.

Vannessa also notes that there is excellent potential to increase both the saprolite and sulphide resources in six relatively large areas (measuring up to 200 metres by 1.5 km) based on high-grade soil geochemical anomalies, radiometrics, and presence of mineralized silicified quartz and rhyolite fragments.

Vannessa acquired Crucitas from Lyon Lake Mines in May 2000. The purchase price came to $25,000 in cash plus 250,000 shares. Vanessa also assumed about $500,000 in payables from Lyon Lake’s books.