Spanish help leach project near first pour: Thorco

A gold-silver heap leach project in southwest Spain is expected to have its first pouring of bullion at year-end, Toronto-based Thorco Resources reports.

Thorco, through its 50% shareholding in Centurion Espana S.A., has a 20% interest in the heap-leach project, for which it provides technical management.

Installation of the crushers, conveyor systems and the processing plant is well advanced, power and water supplies have been inserted, and haulage roads completed. Permanent pads on which to leach the ore are being prepared. Commissioning of the crushing plant is scheduled for the end of November, with leaching to start in December. During 1988, about 330,600 tons of ore are expected to be leached, yielding about 12,000 oz gold and 110,000 oz silver. Total reserves stand at more than 5.51 million tons.

Cost of the project, including three months’ working capital, is estimated to be $6 million(C). Working costs are expected to be about $12 per ton, 20% below the originally budgeted estimates.

In other news, Thorco reports it is investigating other possible mining projects in Spain.

In South Africa, Thorco’s subsidiary, Centurion Mining Co. (Pty.), recorded a profit of $290,000 for the 6-month period ending Aug 31. The subsidiary sold 2,350 oz gold during that period. Reserves were increased 134% from 94,728 tons grading 0.17 oz to 209,248 tons at 0.18 oz.

Centurion has entered into an agreement to merge its interests with two other small producing gold mines and two exploration companies in the Eastern Transvaal district of South Africa. A new company, Cengold Holdings, will be formed to hold the mining interests of the group. The agreement is subject to regulatory approval in Canada and is conditional on the listing of Cengold shares on the Johannesburg Stock Exchange.

Thorco will have an approximate 27% interest in Cengold, which is expected to produce 11,000 oz gold in 1988.