Glencairn doubles reserves at Nicaraguan mine

Glencairn Gold (GGG-T) has doubled the estimated gold reserves at its Limon mine in Nicaragua.

As at Dec. 31, 2004 proven and probable mineral reserves increased to 1.79 million tonnes grading 5.18 grams gold per tonne, or 297,500 contained oz.

The underground component of the reserve, 1.75 million tonnes at 5.22 grams gold per tonne, had a cut-off of 3.82 grams gold, whereas the open pit reserve, 35,000 tonnes grading 2.7 grams gold per tonne, was estimated using a 1.8 grams gold per tonne cut-off.

In addition to the reserves Limon has a measured and indicated resource of 202,800 tonnes grading 6 grams gold per tonne (estimated using a 4.5 grams gold per tonne cut-off) and an inferred resource of 955,800 tonnes grading 6.95 grams gold per tonne.

The reserves and resources were calculated in-house and then audited by consulting firm, Roscoe, Postle Associates. A gold price of US$375 per oz. was postulated.

At Limon’s current mining rate, these reserves represent over five years of production. A significant portion of the reserve increase came from converting resources at the Santa Pancha zone to reserves. In January the company received an operating permit for the project; the ramp portal has been collared and a decline is advancing. Production is expected early next year.

Another zone at the Limon mine, Talavera, had minor increases to reserves. Current underground mining is taking place at Talavera.

Last year, Glencairn sold 48,000 oz. gold, produced at its Limon mine.

Exploration is ongoing at the Talavera Southwest Extension. In February the company reported significant assays from two holes, highlighted by one hole that cut 7.3 metres (true width) that graded 18.8 grams gold per tonne.

Another hole hit several gold-mineralized intervals, two of which graded up to 76 grams gold over 1.4 metres, and 44 grams gold over 1.7metres (core length). This hole is 180 metres west of a hole that cut 12 grams gold per tonne over 22 metres. In-fill drilling is testing the continuity of the zones.

The company’s Bellavista gold property in Costa Rica is set to begin production in the next few months. Proven and probable reserves stand at 11.2 million tonnes grading 1.54 grams gold per tonne. The estimate used a cut-off of 0.5 gram gold per tonne and a gold price of US$325. Construction is over 90% complete.

In late February Glencairn shares began trading on the American stock exchange under the symbol gle.