Lyon Lake pours gold at Beta Vargas

Lyon Lake Mines (LLL-M) has joined the gold production ranks, pouring its first gold at the Beta Vargas mine in Costa Rica.

The Montreal-based company reports that the average daily throughput at its wholly owned Beta Vargas operation is 400 tonnes, with peak days hitting the 700-tonne mark.

Between October 22 and November 30, 12,852 tonnes of ore grading 2.28 grams gold per tonne was mined and placed on a covered leach pad. This grade represents a 21% improvement over the grade estimated in the feasibility study. As well, Lyon Lake reports that the cyanidation cycle is 35% shorter than expected.

Beta Vargas has proven, probable and possible reserves totalling 2.9 million tonnes grading 1.33 grams gold per tonne. It is an open pit operation with a 2-to-1 stripping ratio.

The mine is expected to produce 10,000 oz. gold in its first 12 months and an average of 12,500 oz. per year over the following four years. At that rate, the known reserves will provide an 11-year mine life.

Lyon Lake has instituted a hedging program under which it can sell all of its 1998 gold production at prices varying from US$315 to US$322 per oz.

Production costs at Beta Vargas are estimated at US$256 per oz.

The 39-sq.-km Beta Vargas property, which includes the Canamazo gold concession, lies along the Pan-American Highway, 150 km northwest of the Costa Rican capital, San Jos.