New Release:
March 27, 2000
Senior management of Consolidated Silver Tusk Mines Ltd., (CKS) has returned from a visit to the Company?s KBU project in Indonesia. A mine plan has been formulated and implemented on the property, which will effectively start production activity utilizing existing plant equipment, during the month of April, a few weeks ahead of the May schedule.
The production plan will concentrate on the first of three identified pit areas to be mined, in addition to the processing of the old tailing pond material. The first pit area to be mined represents an area with a total tonnage of 798,221 tons, grading gold at 3.18 g/t; silver at 137.17 g/t and manganese averaging 0.5%.
Based on the initial average production rate of 500 tons per day, and the results of tests conducted at various grinds using gravity recovery, flotation and magnetic separation, the following tentative bench test results have been achieved:
Gold: Utilizing a standard, three-stage flotation circuit at a grind of 55 microns in combination with falcon gravity centrifuges, an overall gold recovery of 88% is indicated utilizing new plant equipment. Low fuel costs in Indonesia make fine grinding an inexpensive option.
Silver/ Manganese: After various options were explored, it was determined that magnetic separation is the most appropriate method for the preliminary concentration of the silver and the manganese contained in the ore. At a grind of 260 microns, test work obtained recoveries of 89% of the manganese and 83% of the silver in 11% of the total weight. Preliminary test work on the magnetic separation concentrate using SO2 to dissolve the manganese minerals indicates a 55% overall recovery of the silver and an 85% overall recovery of the manganese. The silver will be recovered from the solution by electrowinning and the manganese will be precipitated in the form of manganese sulfate powder (Mn2SO4).
Process Research Analytics Limited (PRA) is continuing test work in order to determine improvements on the above recovery rates. Any further improvement on recovery rates will increase the profitability of the overall project.
The installation of the new plant equipment in conjunction with existing plant equipment will allow the recovery of all three metals. This new plant will be completed over a three-month period, as a result of the need to ship and install additional equipment on site, identified through the work already completed by independent metallurgists, and forming part of a new equipment flow-sheet for the plant.
The new mining plan, utilizing existing equipment does however permit the initial partial recovery of gold as of the start up of production activity in April while stockpiling the ore that contains the manganese, silver and that gold not initially recovered. Upon completion of the newly designed production plant the company will commence with processing this stockpiled ore in order to further recover the gold, silver and manganese. This plan will allow for production activity at the earliest possible time without any further delays. The new plant design will ultimately accommodate the simultaneous recovery of Au, Ag and Mn. At the present recovery rates that were achieved through independent bench tests, and factoring in the economic viability of the total recovery process, the Company is very optimistic about the profitability of the Indonesian project, based on the new flow sheet concepts.
On behalf of the Board of Directors,
William Van der Merwe
William J. Van der Merwe.
Vice President ? Finance & Administration.
516 - 1030 West Georgia Street Vancouver, B.C. Canada V6E 2Y3
Vancouver Telephone 604-602-1088 Vancouver Facsimile 604-602-1077
Please direct all investor relations? questions to Mr. William Van der Merwe on (561) 883-5728 at his Florida office, or contact the Vancouver office on (604) 602-1088.
E-Mail: Corporate Office
E-Mail: Investor relations
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