Greenstone develops Santa Rosa gold mine

With a keen interest in developing gold mines in the district, Greenstone Resources (TSE) has decided to start up its second Latin American producer.

The wholly owned Santa Rosa mine in Panama is to be fully developed following approval, by the Ontario Securities Commission, of both a $15.4-million special warrant issue and the restructuring of a $US5-million note payable to Freeport-McMoRan Copper and Gold (NYSE).

(Greenstone also operates the Oronorte mine in Colombia.)

With the recent clearing of its prospectus, Greenstone will immediately receive $7.7 million, which is the balance of the special warrant issue previously held in escrow. Should all the purchase warrants be exercised, Greenstone will raise an additional $9.1 million.

Proceeds will be used to develop Santa Rosa, where construction of heap leach pads has already begun.

The mine has proven and probable reserves of 9 million tonnes averaging 1.5 grams gold per tonne. The first pour should occur later this year and annual production is expected to reach 1.9 million grams (60,000 oz.) in 1996.