Sikaman to start up Cerro Mayal

The Cerro Mayal gold mine in Argentina is scheduled to enter production this month.

Sikaman Gold Resources (TSE) expects to process 35 million cubic feet of gravel per year, initially. From that, about 28,000 oz. gold would be produced at a cash operating cost of US$133 per oz.

In subsequent years, throughput could double as more reserves are established, the company says.

Reserves include 380,000 oz. (proven and probable) and 900,000 oz. in the possible category.

Sikaman has a 40% equity interest in this project until 110% of its invested capital has been recovered, after which time the interest drops to 27%. In other company news, bulk sampling has begun at the Neuquen River gold project, also in Argentina. Results have yet to be released. Exploration and sampling work indicate a potential mining resource of 35 billion cu. ft. of material grading 0.00045 oz. per cubic foot (a billion cubic metres at 0.5 grams per cubic metre). This is equivalent to an estimated 12 million oz. of recoverable gold, Sikaman says.

The company has a 45% interest until 110% of its invested capital is recovered, after which time the interest decreases to 39%.