Construction will begin on the Venezuelan gold mine known as Las Cristinas, following an agreement signed by Placer Dome (PDG-T) and state-owned Corporacion Venezolana de Guayana.
The agreement was signed in Caracas by William Hayes, president of Placer Dome’s Latin American subsidiary, and Elias Ynaty, president of Venezolana de Guayana (or CVG), which owns a 30% interest in the project.
The mine is expected to incur total capital costs of US$576 million, with annual production targeted at 450,000 oz. gold and 36 million lb. copper over a 16-year life.
Production over the first several years of the open-pit mine is projected to average 530,000 oz. at a cash cost below US$200 per oz.
Placer had hoped to begin construction by the end of 1996 but was delayed by negotiations to resolve taxation and other issues related to its mine plans.
About 100 employees were laid off as a result of the delay, but they are expected to be rehired now that an agreement has been reached.
The joint-venture expects to be granted an exemption on a wholesale tax on consumables used in construction, which should result in lower project costs than originally anticipated. The companies also agreed on provisions for a power line and construction contracts.
“CVG will be working on our behalf on the environmental and tax issues,” says Hugh Legatt, spokesman for Placer Dome. “There are no more road blocks in the way. We just need to have the permits in our hands before we begin the earth works.”
The permitting process is expected to last 2-3 months.
Plans call for a combined flotation/carbon-in-leach plant capable of processing 40,000 tonnes per day. Gold and copper recoveries are projected at 82% and 72%, respectively.
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