With gold looking comfortably entrenched above US$300 per oz. of late, South American Gold and Copper (SAG-T) has joined the chorus of miners dusting off old gold projects by completing a preliminary feasibility study of reviving its Pimenton gold mine 174 km northeast of Santiago, Chile.
The study is based on proven and probable reserves totalling 67,800 tonnes averaging 18.7 grams gold per tonne and 1.56% copper. The reserve calculation includes a mining dilution factor of 22%. Another 208,200 tonnes of inferred material runs 19.2 grams gold and 1.58% copper.
The estimates exclude the Maria Elena vein and newly discovered Carmela vein.
The study indicates a capital cost, including working capital, US$3 million to resume operations at Pimenton.
Under SAGC’s plan, operations would gear up in the second quarter of 2003 at an estimated cash cost of less than US$180 per oz. of gold. At start-up, the plant is expected to run at a rate of 2,000 tonnes per month. The company plans an exploration program on some potential high-grade veins at Pimenton, and, if positive, will increase production to 5,800 tonnes per month.
Underground development at Pimenton includes more than 4,100 metres of horizontal and vertical workings plus 11,600 meters of surface and underground drilling.
Between 1995 and 1996, SAGC ran a 35-tonne-per-day pilot plant at Pimenton; the plant was later expanded to 120 tonnes per day. Operations were placed on care and maintenance in early 1997 owing to severe El Nino winter conditions and slumping gold prices.
The 27-sq.-km Pimenton property is situated in Chile’s porphyry gold-copper belt.
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