Construction nears end at Moris gold mine

The Moris gold mine in the Mexican state of Chihuahua is scheduled to enter production by the end of February.

Manhattan Minerals (VSE) is putting the finishing touches on its newly constructed open-pit, heap-leach operation. All major mine components are installed, and stacking of ore on the leach pads will begin, following a test-run of the crushing and conveying equipment.

Minable reserves are estimated at 4.7 million tons grading 0.062 oz. gold and 0.3 oz. silver per ton, at a life-of-mine stripping ratio of 1.3-to-1. Based on a throughput of 2,200 tons per day, the operation is expected to yield 28,000-30,000 oz. gold annually over an 8-year mine life. The projected cash cost is US$190-195 per oz.

(The crushing and processing plant was constructed to handle as much as 3,500 tons per day, and, when this rate is achieved, gold production will be increased substantially.)

Exploration work is sizing up the potential of two mineralized zones occurring along a trend to the north of the main pit area.

The Eureka zone is defined along a strike length of 750 ft. and a width of 450 ft. Values from trenching range from 50 ft. grading 0.013 oz. gold to 136 ft. grading 0.03 oz.

Immediately east of Eureka is the Mexicana zone, where surface sampling and geological mapping continue to assess the resource potential.

Manhattan has acquired a 5,000-hectare concession, known as the Rome prospect, northeast of, and contiguous to, the Moris mine. The company is carrying out a due diligence exploration program of surface trenching and bulk sampling to confirm previous work, which identified a small resource grading in the neighborhood of 0.04 oz. gold.

The Montosa property, 60 miles south of Moris, covers an extensive porphyry system with associated gold-bearing, breccia zones. A series of widespread, reverse-circulation drill holes has tested the breccia system, returning the following near-surface intercepts: 40 ft. of 0.041 oz. for hole 1; 30 ft of 0.048 oz. for hole 6; 25 ft. of 0.019 oz. for hole 7; 65 ft. of 0.025 oz. for hole 12; and 60 ft. of 0.043 oz. for hole 13.

Manhattan continues to evaluate the potential of the porphyry system. Geochemical surveys and geological mapping have identified a zoned alteration environment over an area measuring 2.5 by 3.7 miles. Anomalous copper values are indicated by soil samples, while rock chip samples have assayed up to 0.67% copper.

With the staking of the Chichaco concession, 6 miles south of Montosa, the company has increased its holdings in the area. The 7.7-sq.-mile property covers a sulphide intrusive complex, where mineralization is associated with: high-grade, polymetallic veins; disseminated, sulphide-bearing intrusive rocks; and manto replacements in limestones. The area was worked historically by the Spanish.

Limited reconnaissance sampling of the three principal forms of mineralization yielded values of: 5.5% combined lead-zinc, 1% copper, 9.3 oz. silver and 80 parts per billion (ppb) gold for veins; 0.2% copper, 5.5 oz. silver and 47 ppb gold for intrusive rocks; and 15 oz. silver and 308 ppb gold for limestone replacements.

Sampling of scattered outcrops of brecciated, mafic intrusive rocks, lying 1,600 ft. east of the historic workings, returned values of 0.48% copper, 0.09 oz. gold and 5.6 oz. silver.

In Peru, the company is continuing to formulate an agreement that would allow it to earn 70% of the 75% interest held by BRGM of France in the Tambo Grande massive sulphide deposit. Approval by the Peruvian government is required before Manhattan can begin the earn-in process of spending US$5 million over three years.

Tambo Grande is estimated to contain a geological resource of 46.3 million tons grading 2.06% copper, 1.47% zinc and 0.88 oz. silver. Manhattan is confident it will be ready to proceed with the project by the end of March.