Rayrock reports progress at Bellavista and Ivan

With resources almost doubling at its Bellavista gold project in Costa Rica, Minera Rayrock (TSE) is poised for a strong final quarter.

Drilling at Bellavista has increased the mineral resource to 37.4 million tonnes averaging 1.8 grams gold per tonne for a contained resource of almost 2 million ounces gold.

The preliminary mine plan envisions two possible open-pit designs, both of which carry a cutoff grade of 0.7 gram gold. The larger pit holds proven and probable minable reserves of 19 million tonnes averaging 1.66 grams gold per tonne, for a contained resource of 1 million oz. gold. The smaller, more profitable pit has proven and probable minable reserves of 12.3 million tonnes averaging 1.63 grams, for a contained resource of 645,000 oz.

In addition to increasing reserves, drilling has extended the mineralization north of the proposed pit. It is expected that potential undergound reserves will be minable using low-cost, underground methods. While reserves have not been calculated for the larger pit, a preliminary estimate of underground reserves using the smaller pit design is 2.4 million tonnes grading 3.83 grams.

An evaluation of Bellavista as a combined small pit/underground mine indicates operating costs will average US$200 per oz. over 13 years. The project is expected to produce up to 90,000 oz. annually for the first five years at a cost of US$172 per oz.

As part of an ongoing feasibility study, an environmental impact statement is being prepared. The study is expected in the new year. Financing and project development could be completed in 1996, which would pave the way for production to begin in 1997.

Elsewhere, in Chile, Rayrock reports that September production of copper cathode from its Ivan mine has improved, since problems resulting from an earthquake and damaged pond liner were reported in July and August.

September production is expected to be 94% of design capacity, which is 10,000 tonnes of copper per year or 27.4 tonnes per day. Operating costs to date have averaged US80 cents per lb. copper — higher than the budgeted US65 cents per lb. This is the result of failure to reach design capacity rates.

With the improving production results, Rayrock hopes to expand plant facilities to 120% of design capacity.