THE LATIN BEAT — Eldorado constructing La Colorado

The environmental impact statement for the Colorado project in Sonora state has met with a positive review by Mexican authorities.

Vancouver-listed junior Eldorado can now proceed with construction and operation of open-pit, heap-leach facilities. The company is earning a 70% interest in the 13-sq.-mile property from Campbell Resources (TSE). Having already carried out test-mining, Eldorado plans to place La Colorado in production immediately. The property has a geologic resource of 2.3 million tons grading 0.048 oz. gold per ton, with a waste-to-ore strip ratio of 1.53-to-1. This represents three years of minable reserves, and systematic exploration is expected to add to this reserve.

The mine is expected to produce about 20,000 oz. in 1994, increasing to 25,000 oz. in subsequent years. Operating costs are projected to be US$150 per oz.; capital costs, about US$2 million. Capital payback is expected within the first year of operation.

With $7 million in working capital, Eldorado is exploring other gold projects in Mexico.