Newmont had already sunk US$1.5 million into exploration on the concessions, including stream-sediment sampling, mapping, ground geophysical surveys and 2,400 metres of drilling on the Bonete prospect. On the Real de la Cruz prospect, Newmont performed soil sampling, mapping and trenching. (The option did not include the Limon mine concession.)
To earn its interest, Newmont would have to have spent US$5 million by June 6, 2006.
Black Hawk plans to proceed with exploration on the concessions.
Fieldwork is planned for the past-producing La India district and Rincon de Garcia-Mina de Agua veins. The La-India-El Sauce mineral concession already hosts an indicated resource of 775,400 tonnes running 8.2 grams gold per tonne, plus an inferred resource of 1.1 million tonnes of 9.3 grams gold. Exploration will also target areas of artisanal mining, such as Villanueva and La Grecia.
Meanwhile, Black Hawk is drilling targets on its Limon mine concession. Earlier this year, the company came to an agreement to buy back
During the recent second quarter, the mine churned out 15,229 oz. gold, off slightly from the year-earlier 16,042 oz., owing to lower grades (6.4 grams versus 6.5 grams). For the first half of 2002, Limon spat out 30,677 oz., compared with 37,483 oz. a year earlier on lower grades (6.5 grams versus 7.2 grams) and fewer tonnes milled (168,820 compared with 176,833).
The mine is expected to produce 30,000 oz. gold for less than US$200 apiece for the balance of the year.
Second-quarter cash costs were US$211 per oz., down from US$203 per oz. in 2001. For the first half, cash costs climbed US$28 to US$204 per oz. on lower production.
The cash operating costs per tonne milled were $38 and $37 for the second quarter and first half of 2002, respectively. The figures are unchnaged from the year-earlier periods.
For the first half, Black Hawk posted a net loss of US$491,000 (nil per share) on revenue of about US$8 million, compared with a year-earlier profit of US$1.2 million (1 per share) on US$10.7 million.
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