With production just around the corner at the Moris silver-gold mine in Chihuahua, Mexico, 30%-70% joint venture partners EXMIN Resources (EXM-V) and Hochschild Mining Group (HOC-L) are making aggressive plans to further exploration on the property.
Leaching operations are set to start by the end of July as planned, but in a bigger and better way.
Capital costs for the project were increased to US$15.7 million from US$9.7 million. The added dollars have gone toward exploration, increasing crushing capacity, and accelerating leach pad construction and operating expenses prior to gold-silver dore production, which should happen by September.
Initially, the company will crush ore at a rate of 2,000 tonnes per day to test the crushing and conveyor systems and provide material for the leach pads. Once a new crusher has been installed, the crush rate will be bumped up to 3,000 tonnes per day.
Measured and indicated resources for the Eureka, San Luis and Creston deposits of the Moris mine total 4.1 million tonnes grading 1.33 grams gold and 4.93 grams silver per tonne.
The companies are working to verify the historical resource from the Moris mine that were not included in the National Instrument 43-101 resource. Compiled by Manhattan Minerals, the historical resource being verified is 4.7 million tonnes grading 1.66 grams gold and 5.63 grams silver per tonne.
Exploration work is being done on two different areas of the mine property.
The Moris Mine Norte deposit, 3 km north of the Moris mine along the same structural zone, has returned results has high as 3.3 grams gold per tonne and 1,385 grams silver per tonne.
Results from the El Cajon target, 5 km southwest of the Moris mine on a large alteration zone associated with an intrusive rock, graded up to 1.9 grams gold and 226 grams silver per tonne.
EXMIN and Hochschild have a new target – the Los Arabes area, which hosts a zone of narrow quartz veins, traced for 900 metres.
EXMIN also signed a letter of agreement yesterday where Hochschild may enter a strategic alliance, purchasing up to US$4.5 million in EXMIN stock at a price of 40 per share. EXMIN plans to use the money to meet its financial obligations for the Moris mine.
EXMIN shares rose 10% in Toronto today, or 5 to 53 on a trading volume of 292,000 shares.
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