Bridger Resources (VSE) reported a reduction in gold production at the new La Pepa mine near Copiapo, Chile, because of mechanical problems during the startup phase of operations. The mine is operated by Bridger’s 68% owned Chilean subsidiary. An unreliable crushing facility is blamed for having caused the startup problems in the flotation-gravity mill. A new crushing plant, however, was installed recently to solve the problem. Bridger now plans to make several other mechanical improvements to upgrade the efficiency of the operation.
According to the company’s consultant, metallurgical testing has indicated that minor changes to flotation chemistry may improve recoveries to more than 85% (from the 75%-range) with feed grades of 16 grams per tonne or better.
The changes are also expected to increase flotation concentrate grades from about 200 grams to greater than 1,500 grams per tonne. The changes should ultimately result in an increased mill capacity and reduced production costs. The mill is currently rated at 300 tonnes per day.
Because of the anticipated increase in recoveries, Bridger does not expect to go ahead with the installation of a cyanide circuit, for a saving of about US$1 million in capital costs.
Measured and indicated reserves at the La Pepa gold mine are currently estimated at 231,000 tonnes grading 15.51 grams gold.
Because of the milling problems, Bridger has delayed the payment of a $289,625 debt to Cluff Mineral Exploration and is currently negotiating a new repayment schedule.
In addition to the Cluff debt, there are some fairly hefty property payments attached to the La Pepa mine. Bridger purchased the property for US$12.315 million, of which US$9.49 remains outstanding. The debt is payable in 10 quarterly instalments of US$850,000 each, plus a final payment of US$990,000. Bridger noted that it met the US$850,000 property payment due on June 1.
The La Pepa mine is targeted to produce about 35,000 oz. gold annually this year, increasing to over 50,000 oz. annually starting in 1991.
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