Moris mine proves richer than expected

Production levels at the Moris gold-silver mine in Mexico’s Chihuahua state are exceeding expectations.

From May 1 to June 30, the open-pit, heap-leach mine yielded 1,776 oz. gold and 2,600 oz. silver, with a further 832 oz. gold still on carbon at month’s end.

>From the Talud pit, owner Manhattan Minerals (MAN-T) mined a total of 201,147 tons grading 0.061 oz. gold per ton. Ore currently being mined grades in excess of 0.088 oz. The Talud is estimated to contain 300,000 tons grading 0.082 oz., though current estimates put the deposit at 500,000 tons.

Crusher throughput has averaged 2,755 tons per day, exceeding the suggested feasibility study rate of 2,200 tons. And by the end of July, the leached solution application rate is expected to reach the capacity target of 1,000 gallons per minute.

Manhattan anticipates gold production will climb to 2,500 oz. per month upon completion of the initial 3-month startup period at July end.

The Moris mine hosts a minable reserve totaling 4.7 million tons grading 0.062 oz. gold and 0.3 oz. silver at a life-of-mine stripping ratio averaging 1.3-to-1. The geological resource stands at 6.7 million tons averaging 0.058 oz. gold and 0.3 oz. silver.

Based on the feasibility study, the operation was projected to produced an annual 28,000-30,000 oz. gold over an 8-year mine life at a cash cost of US$190-195 per oz.

Chairman Robert Willis expects the mine soon will be in a position to produce 36,000-44,000 oz. per year at a cash cost of US$185 per oz.

Drilling to expand the minable reserve base recently was completed to the north of the main Creston and San Luis pits in the Eureka area. The 72-hole program evaluated a near-surface oxidized zone and a deeper sulphide zone.

While results of this program are not expected for about four weeks, preliminary estimates suggest the oxide potential to be greater than 1 million tons. An additional 12 holes are delineating a northern zone at Eureka.

Exploration drilling is expected to get under way shortly on the 5,000-hectare Rome concession, which is contiguous to the Moris mine, 6 km to the east. The property hosts a near-surface resource of 15,000 oz. gold. A reinterpretation of the geology suggests the potential for a much larger zone of stratabound mineralization.

Geological mapping and sampling are in progress on the company’s Candamena and Oribo properties. Previous sampling at Candamena revealed numerous widespread zones of what appears to be disseminated gold mineralization, including a 130-by-130-metre area where channel sampling averaged 0.03 oz.

The Oribo property was acquired on the basis of the Central zone, an oxidized skarn prospect that extends along 500 metres of strike, up to 15 metres in width, and averages 0.2 oz. gold. The current work program has identified five other potential targets.

Mapping and sampling are also slated for the Guazizaco property, which hosts two large gold soil anomalies: Guazizaco Hill and Montana de Oro.

In Peru, Manhattan continues to work out the details of acquiring a 50.5% interest in the Tambo Grande massive sulphide project. Tambo Grande is estimated to contain a resource of 46.6 million tons grading 2.06% copper, 1.47% zinc and 0.88 oz. silver.