Vancouver — Having closed its Andacollo gold mine in central Chile late last year, Dayton Mining (DAY-T) has initiated the liquidation of the mining and plant equipment.
The company has entered into agreements with Henry Butcher International to market and sell the mining fleet, crushing plant and conveying-stacking system.
The permanent closure of the operation came in December. It was attributed to a weak reserve model at the Churrumata and Natalia open pits, resulting in higher stripping ratios and fewer tons for the leach pad. Also, leaching rates were significantly lower than expected for ore from the Natalia pit.
Dayton had hoped to increase the recovery rates to planned levels by installing an internal liner. However, this plan proved to be unsatisfactory.
In the first half of 2000, Andacollo produced 52,204 oz. gold at an average cash cost of US$253 per oz. This was below the forecast of 112,300 oz. gold for the year and above projected cash costs of US$243 per oz.
Since the shutdown, leaching has produced 25,900 oz. gold and is expected to continue over the next year.
The gold recovery plant will be sold after the leaching is complete.
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