The San Francisco gold mine in Mexico’s Sonora state has seen increased gold production and further positive exploration results in recent months.
Owner Geomaque Explorations (GEO-T) poured its first gold from the mine in October 1995, and production in the second quarter of 1996 totalled 10,862 oz. June production reached 3,849 oz., which, if repeated, could lead to an annual rate of 46,000 oz.
An exploration program is reported to be making progress, with two reverse-circulation rigs in full swing. A diamond drill is being added, to obtain geological and metallurgical samples. Much of the drilling over the past month has been definition work, proving up more ore within the new pit limits. New stepout drilling has been extending mineralization downdip and to the west, beyond the new pit limits.
Recent drill results from holes 15 through 23 include: 26 metres of 2.6 grams gold per tonne; 26 metres of 2.32 grams; 44 metres of 1.46 grams; 10 metres of 3.75 grams; 16 metres of 1.41 grams; 24 metres of 1.89 grams; 14 metres of 1.51 grams; and 22 metres of 2.69 grams. The best intervals are found between 4 and 214 metres below surface.
Geomaque’s vice-president of exploration, Phillip Walford, says: “The results continue to be encouraging and we intend to extend the drilling until at least September.”
As of April 1, gold in proven and probable reserves totalled 525,000 oz.
Positive exploration results have prompted Geomaque to commission a study to establish the cost of increasing production to 75,000-100,000 oz. gold per year. The basis for the actual rate will be a new reserve calculation, to be completed in September.
To fund ongoing capital requirements at the mine, Geomaque is borrowing US$1.5 million from Republic National Bank of New York.
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