Eldorado updates Colorada reserves

Bermuda-based Eldorado (TSE) has calculated a new estimate for reserves at La Colorada, an open-pit, heap-leach gold mine in Mexico’s Sonora state.

The proven and probable figure for two deposits — El Creston and Gran Central — now stands at 20 million tons grading 0.033 oz. per ton, compared with the previous estimate of 12 million tons at 0.041 oz.

An additional possible resource is estimated at 20 million tons averaging 0.033 oz.

The increase in reserves is attributed to exploration programs on the mine site, which has an intermittent production history going back to the turn of the century.

Exploration continues, in the form of reverse-circulation and diamond drilling.

Eldorado expects to produce 30,000-35,000 oz. gold this year, at a cash cost of US$150 per oz. By 1997, this is expected to increase to 75,000 oz. To achieve this expanded production rate, the company expects to upgrade the processing facilities currently on site.

Eldorado is represented in Canada by the Hemmingsen Group of Vancouver, B.C. The junior company has other advanced gold projects in Mexico, including the joint venture La Trinidad property in Sinaloa state.