As of Dec. 31, 2004, proven and probable reserves increased to 1.8 million tonnes grading 5.18 grams gold per tonne, or 297,500 oz. The underground component, 1.75 million tonnes at 5.22 grams gold, was estimated using a cutoff of 3.82 grams gold, whereas the open-pit portion, 35,000 tonnes grading 2.7 grams gold, had a 1.8-gram cutoff.
Limon also has a measured and indicated resource of 202,800 tonnes grading 6 grams gold, based on a 4.5-gram cutoff, plus 955,800 tonnes grading 6.95 grams gold in the inferred category.
The estimates were calculated in-house using a gold price of US$375 per oz., then audited by Roscoe Postle Associates.
Reserves will now support more than five years of production.
A lot of the new reserves are in the Santa Pancha zone.
In January, Glencairn received an operating permit for development of the Santa Pancha zone. The ramp portal has been collared, a decline is advancing, and production is slated for early 2006.
Reserves were also added at the Talavera zone, where underground mining is in progress.
Last year, Glencairn sold 48,000 oz. of Limon’s gold.
The company is exploring the Talavera Southwest Extension, where one drill hole intersected 7.3 metres (true width) grading 18.8 grams gold. Another hole hit several gold-mineralized intervals, including 76 grams gold over 1.4 metres, and 44 grams gold over 1.7 metres (core length). This second hole is 180 metres west of a hole that cut 12 grams gold over 22 metres. Infill drilling is testing the continuity of the zones.
At Glencairn’s Bellavista project in Costa Rica, construction of an open-pit, heap-leach gold mine is almost complete and startup is slated for the second quarter. Reserves stand at 11.2 million tonnes grading 1.54 grams gold. The estimate is based on a cutoff of 0.5 gram gold and a gold price of US$325 per oz.
In February, Glencairn began trading on the American Stock Exchange under the symbol gle.
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