General Minerals produces Bolivian silver

General Minerals (GNM-T) has commenced production at the Atocha silver mine in west-central Bolivia.

A custom mill in Oruro processed the first 1,879 tonnes of ore, which averaged 627 grams silver per tonne, to produce 53 wet tonnes of concentrates.

General Minerals expects to have some of the concentrates smelted in Bolivia, while a portion will be sold to local traders or overseas smelters.

The initial ore came from haulage and preproduction tunnels in the ore zone. As exploration continues to block out mineralization, the company expects the head grade of the ore to increase. To date, General Minerals has completed 10 drillholes into the A-10 level of the Manto Cloruro zone. The drill pattern covered an area measuring 200 by 50 metres, enough to supply ore for further test mining.

Highlights from the drilling include:

– a 2.1-metre interval of manto grading 955.9 grams silver per tonne;

– 1.8 metres grading 895.7 grams;

– 1.4 metres of 463 grams; and

– 1 metre of 777 grams.

Channel samples were generally higher in grade, including: 2.9 metres averaging 4,283 grams silver per tonne; 3.1 metres of 1,532 grams; and 2 metres of 2,104 grams.

General Minerals is proceeding with further development of the underground mine. It intends to establish continuity and grade of the ore in the manto and optimize the mining method and associated costs, which will be included in an ongoing feasibility study for a larger operation.

To date, the company has completed 590 metres of development in the southernmost area of the mine. Crosscuts intersect the manto in four places. The company has a second major tunnel to the north, where drilling is determining the position of the manto north of the 180 crosscut.

More than 1 km north of the A-10 adit, the company is drifting on the PM-3 tunnel in the Condor area. The elevation of the area is 500 metres higher than the Manto Cloruro, indicating that the mineralizing system has significant lateral and vertical extent.

The company is also conducting regional exploration along the 30-km trend of mineralized host rocks.

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