Eldorado boosts La Colorada reserves

The owners of La Colorada gold mine near Hermosillo, Mexico, report an operating rate of 25,000 oz. per year and an increase in minable resources to 305,000 oz.

Eldorado (TSE) has a 70% interest in the mine, with Campbell Resources (TSE) owning the balance.

The resource amounts to 7.9 million tons grading 0.038 oz. gold per ton and Eldorado is considering expanding the operation in light of the increase. The open-pit heap-leach mine, which started up on Jan. 1, produced 7,252 oz. gold to the end of June and should produce 22,000-25,000 oz. for the calender year. Cash costs are expected to be below US$200 per oz. for the year and should average US$153 over the life of the mine.

Development drilling since the beginning of the year, on the Creston and Gran Central deposits, totals 14,700 ft. in 50 holes.

Highlights from the program are as follows:

Hole Interval Width Gold

(ft.) (ft.) (oz./ton)

GCR-13 6.56-91.84 85.28 0.059

GCR-12 118.08-223.04 104.96 0.076

GCR-15 216.48-301.76 85.28 0.099

GCR-22 45.93-111.55 65.62 0.036

GCR-25 32.81-104.99 72.18 0.120

MPR-2 144.32-229.60 85.28 0.038

MPR-5 98.4-150.88 52.48 0.075

MPR-6 98.4-144.32 45.92 0.055

MPR-7 65.6-124.64 59.04 0.037

MPR-52 91.84-367.36 275.52 0.032

MPR-54 104.96-308.32 203.36 0.032

MPR-59 0.0-131.20 131.20 0.045