Encouraged by a pre-feasibility study, Lyon Lake Mines (ME) is hoping to have its Beta Vargas heap-leach gold project in Costa Rica in operation by the first quarter of 1995.
President Guy Hebert said the preliminary engineering study, undertaken by Kilborn and Associates, estimates a capital cost of US$1.2 million, including contingencies.
At an average mining-leaching rate of 160,000 tons per year, the operating costs would be an estimated US$11.1 per ton. Hebert said he is confident Beta Vargas can operate at a cash cost of US$200 per oz. A short payback period is envisaged.
The project, wholly owned by Lyon Lake (subject to a royalty and two net profit interests), is 90 miles northwest of San Jose, Costa Rica’s capital. Work realized for the study was performed on only a small part of the concession — the Beta Vargas hill — and covered an area of 1,500 ft. by 500 ft. and to a depth of 450 ft.
Three types of mineralization have been identified: oxidized, transitional and non-oxidized. Preliminary reserves (all types) total 1.7 million tons grading 0.04 oz. gold per ton in the probable category and 1.1 million tons grading 0.043 oz. possible.
Drilling and surface work indicate that the mineralized structures continue to the east, west and at depth, Hebert said.
A 2-ton bulk sample of oxide ore tested positive at the Mineral Research Centre in Quebec City for treatment by heap-leaching.
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