Palmarejo metallurgical tests go well (April 05, 2005)

Flotation and leaching tests on mineralization from the Palmarejo gold and silver deposit in Chihuahua State, Mexico, have shown high recoveries.

New operator Palmarejo Gold (PJO-V), which acquired the property from a subsidiary of Australian junior Bolnisi Gold, commissioned tests by SGS Lakefield Oretest on cuttings from reverse-circulation drill holes. Oretest used a ball mill, two rougher flotation stages and two scavenger flotation stages, testing a total of 540 kg of material with head grades of 5.1 gram gold and 433 grams silver per tonne.

Tests showed 82% of the gold and 80% of the silver was recovered in the rougher concentrate, and a 5% sodium-cyanide solution recovered 99% of the gold and 98% of the silver in the rougher concentrate after a 48-hour leach. The net recovery was 81.5% for gold and 78% for silver.

The scavenger circuit recovered a further 7% of the gold and 8% of the silver, with a 48-hour leach in 5% sodium cyanide recovering 97% of the gold and 92% of the silver in the scavenger concentrate, for total recoveries of 7% for each metal.

Leach tests on the tails, using a 0.1% sodium cyanide solution in a 24-hour leach, showed 83% of the gold and 54% of the silver in the tails could be recovered.

Palmarejo, formerly junior capital pool company Bonita Capital, took over the Bolnisi interests for 52.3 million shares and 12.5 million warrants, exercisable at $1.50 for two years. Bolnisi and related parties control about 80% of the shares.

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