MINING IN MEXICO — Penoles developing La Cienega project

Preparing La Cienega mine in the northwest of Durango state for underground production this year is the Penoles group.

The project’s deposits sit in a 4-km-long system of quartz veins and host gold-silver-base metal mineralization.

Total reserves are estimated to be 5.2 million tonnes grading 6 grams gold and 170 grams silver per tonne, 1% lead and 1.3% zinc. A minelife with a minimum of 13 years has been calculated.

Both oxide and sulphide ores will be extracted and processed at a flotation/cyanidation plant. Ore with a sulphide grade of 1% lead and 1.1% zinc or greater will be concentrated by flotation before being sent to cyanidation. Lower-grade sulphide ore will go directly to cyanidation. The initial capacity of the plant will be 400 tonnes per day in the flotation section and 600 tonnes per day in the cyanidation section, increasing to 600 tonnes and 900 tonnes, respectively, at the beginning of the third year.