LATIN AMERICA ROUNDUP — Dayton mulls Andacollo venture

Management of Dayton Mining (TSE) may retain a financial advisory firm to evaluate merger and business proposals from mining companies interested in its Andacollo gold project in Chile.

Dayton has received an offer from an international major looking to acquire a 25% interest for US$18 million, plus 25% of capital costs and the provision of certain corporate guarantees (relating to project bank financing). Wayne McClay, president of Dayton, reported in late August that discussions were in progress to retain the Toronto-based advisory firm “in order to optimize shareholder value.”

Basic engineering at Andacollo is complete, and permits to begin construction are in place. An ongoing drill program is expected to increase minable reserves last reported to be 30.4 million tons grading 0.034 oz. gold per ton. The proposed open pit project is targeted to produce 140,000 oz. gold per year at an average cost of US$165 per oz. using heap leach processing techniques.