Dayton Mining (DAY-T) reports a 21% increase in minable reserves at its Andacollo gold mine near La Serena, Chile.
The company added 257,000 oz. gold to proven and probable minable reserves (after deducting 146,000 oz. mined last year). As a result, the total figure currently stands at 54.7 million tonnes grading 0.86 gram gold per tonne, which translates into 1.5 million contained ounces. Dayton notes that these audited reserves were estimated by Denver-based Mine Reserve Associates.
The Andacollo property also contains additional resources not yet classified as reserves. A US$3.2-million exploration program will attempt to expand existing minable deposits and test new resource targets, as well as the potential for mineralization below known deposits.
On the financial front, Dayton reported a loss of $3.4 million for 1996, compared with a loss of $3.5 million in the previous year.
The company’s Andacollo mine turned out 87,650 oz. last year (its first full year of production), compared with 13,400 oz. in 1995 when mining operations began. Production during the fourth quarter of 1996 was 22,131 oz.
Cash operating costs were US$205 per oz. for the year and US$248 per oz. in the fourth quarter of 1996.
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