Gold resources at the Andacollo mine in Chile increased by 30% in 1996, compared with the previous year’s figures.
The mine, owned by Dayton Mining (DAY-T), was calculated as hosting 130 million tonnes at 0.7 gram gold per tonne (equivalent to 2.9 million contained ounces). A cutoff grade of 0.3 gram was used.
The new figure represents an increase of 700,000 contained ounces over the estimate at the end of 1995.
Based on data gleaned from nearly 30,000 metres of drilling last year, the company plans to combine several deposits — Tres Perlas, Tres Perlas West, Natalia and Churumata — into a single pit. Two other deposits — Socorro and the advanced Chisperos — will be mined from separate pits.
Reserves will be calculated after pit designs are complete.
The Andacollo mine, 400 km north of Santiago, produced 87,650 oz. gold in 1996 at a cash cost of US$205 per oz. Projections had called for 100,000 oz.
at US$180 per oz. Dayton blames the difference on low production and high costs in the second half of the year, a longer leach cycle and a strike. The last of these was settled by a 4-year contract.
Daily throughput in 1996 was boosted to almost 16,000 tons from the design rate of 14,000 tons.
The primary crusher was recently modified, and, in the fourth quarter, a third tertiary crusher and screen will be installed in an attempt to boost throughput to 20,000 tons per day.
Dayton plans to produce 130,000 oz. this year, rising to 160,000 oz. by 1999.
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