Minera Rayrock producing and exploring in Latin America

Significant developments are reported from three of Minera Rayrock’s (TSE) projects in Chile and Costa Rica.

The Ivan copper project in northern Chile recently entered production. In January, it yielded 87% of its planned daily rate of 27 tonnes of copper cathode, with operating costs slightly higher than forecast, at US65 cents per lb. Copper cathode quality averaged 99.9%, and production was sold at an average price of US$1.36 per lb.

It is expected that, as operations stabilize, production rates will increase and cathode quality will improve to 99.97%.

Mining studies are under way to determine the feasibility of increasing the production rate at Ivan by as much as 20%. Results of the study are expected in April.

Elsewhere in Chile, two drills are being used to complete reserve definition drilling on the Sierra Valenzuela copper property. Early results from drilling of the Rosario, Esperanza and Gorro deposits confirmed the general outlines of mineralization indicated by earlier work.

Over the next several months, Minera plans to complete feasibility work and mine planning. To date, 13 zones, averaging between 1% and 2.5% copper, have been identified over a 10-sq.-km area.

Meanwhile in Costa Rica, Minera has completed the first phase of definition drilling on its Bellavista gold property. In addition to confirming the presence of the known deposit, the 10,000-metre program resulted in the discovery of a zone of mineralization to the north.

A second-phase, 4,000-metre program will be carried out to determine the extent and grade of this new zone.

A feasibility study, including engineering studies and mine planning, will be carried out on the Bellavista property by the third quarter.