Great Lakes pours first gold

The latest Mexican gold producer is Great Lakes Minerals (GKM-T), whose Lluvia de Oro mine poured its first gold in mid-May.

Situated in Sonora state, the open-pit, heap-leach operation is expected to yield more than 15,000 oz. this year from 740,000 tonnes of ore grading 1.04 grams per tonne.

At full production, annual output is expected to reach 25,000 oz. at a cash cost of US$245 per oz. Gold recovery is forecast at 81%.

Ore is extracted from the Creston pit, which contains 5 million tonnes grading 1 gram gold per tonne. An additional resource of 3.5 million tonnes grading 1 gram has been outlined in four areas outside the Creston pit.

Beginning in September, drilling will attempt to upgrade the outlined resource into the minable category, as well as explore untested targets.

Meanwhile, in neighboring Sinaloa state, the company is continuing its prefeasibility study on the Palmarito silver-gold project.

A resource of 3.4 million tonnes grading 141 grams silver and 0.54 gram gold has been identified over a strike length of 150 metres. An additional 250,000 tonnes grading 281 grams silver and 0.53 gram gold has been identified in waste dumps, as well as 200,000 tonnes grading 109 grams silver and 0.33 gram gold in tailings from previous mining.

Metallurgical tests are expected to wind down in October, with infill drilling planned before year-end.