A feasibility study has given the redevelopment nod to the past-producing Santa Juana mine in Durango, Mexico.
The mine, owned by William Resources (ME), hosts 2.8 million tonnes averaging 3.6 grams gold and 313 grams silver per tonne, as well as 4.4% total base metals (lead, zinc and copper). Of this total, 2.7 million tonnes are categorized as possible and 146,000 tonnes as probable ore. Santa Juana is part of the Velardena mine project and is one of three past-producing mines on the Terneras claim group.
Initially, the deposit will undergo five months of preproduction development. Mining and processing will then be carried out at the daily rate of 400 tonnes, escalating to 500 tonnes within 21 months. After four years, this will be further increased to 900 tonnes.
Over an operating schedule of 11 years, the mine is expected to produce an average of 2.2 million oz. silver and 24,000 oz. gold per year. The annual production equates to 67,000 oz. gold equivalent at an average cost of US$190 per oz.
A capital expenditure of $8.3 million is deemed necessary in order to achieve the processing rate of 500 tonnes per day. Much of the money will be used to rehabilitate and expand the concentrator, install a leach circuit and redevelop underground workings.
The Velardena project is owned by William (40%), Montreal-listed Minorca Resources (40%) and a private Mexican interest (20%).
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