During 2001,
From its mines in Uruguay and Venezuela, the company produced 109,000 oz., up 15% from 2000. During the final three months of the year, the company’s annualized production rate hit 120,000 oz.
The bulk of production came from the San Gregorio mine in Uruguay. During the year, the mill processed 1.1 million tonnes to produce 66,957 oz. gold at a cash cost of US$218.55 per oz. During the fourth quarter, the mill processed 280,630 tonnes at a head grade of 2.17 grams gold per tonne to yield 18,000 oz., considerably better than in previous quarters.
A reduction in soluble losses led to an improved recovery rate of nearly 92%. Production for 2002 is pegged at 70,000 oz. at similar cash costs.
Initial production from the Santa Teresa deposits, 1 km west of San Gregorio’s main pit, began during the third quarter and has exceeded the tonnage and grades outlined in the geological model.
In Venezuela, Crystallex secured control of
The project comprises six deposits near the Revemin gold mill. Lo Increible’s indicated resources are estimated at 8.87 million tonnes grading 3.39 grams gold per tonne. There are also 15.1 million tonnes of inferred resources running 3.26 grams gold. The cutoff grade for both categories is 1 gram gold per tonne. More than half the resources and reserves are contained in the La Victoria deposit.
Infill drilling
Mining at La Victoria began in April, and by the end of 2001, production had amounted to 26,504 oz. with a recovery rate of 89.7%. An ongoing 10,000-metre program of infill drilling is aimed at upgrading resources and reserves.
Another 11,132 oz. gold were produced from the Tomi deposit in Venezuela, the recovery rate being 91.6%. Tomi comprises four open-pit deposits. During the year, Crystallex advanced, by 50 metres, a decline being driven into the Charlie Richards deposit. The company expects to extract its first ore from the deposit in July 2002.
Probable reserves at Charlie Richards are pegged at 163,000 tonnes grading 14.5 grams to a vertical depth of 200 metres. The deposit remains open at depth.
At its Albino 1 concession, in the Kilometre 88 district, Crystallex hopes to begin development work so that underground mining can begin later in the year.
Recent modifications at Revemin allow for ores from both the Tomi and La Victoria mines to be processed. During the fourth quarter, the Revemin mill operated at a rate of 1,441 tonnes per day. Under way is a phased expansion to 1,800 tonnes per day in 2002 and to 3,000 tonnes per day in 2003. The mill will also handle material trucked in from the Albino 1 and Charlie Richards mines.
Crystallex President Marc Oppenheimer says his company has made great strides in reducing costs and increasing production. “We have assimilated the acquisitions made over the past few years and are bringing our operations in Venezuela up to the same operating standards that have produced lower costs and higher production at our San Gregorio mine in Uruguay,” he says.
At the end of 2001, the company had sold forward 287,000 oz. gold, or 27% of reserves. These ounces are deliverable over the next five years at more than US$300 apiece.
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