Michael and all
Golden Bear production ahead of schedule
Wheaton River Minerals Ltd WRM
Shares issued 30,390,348 Sep 16 close $0.44
Wed 17 Sept 97 News Release
Mr Ian McDonald reports
The gold recovery cycle at the newly commissioned Golden Bear heap leach
mine in northwestern BC has advanced more rapidly than initially expected.
Approximately 20,000 ounces have been produced since leaching began on
August 6, representing a recovery rate of 50% in the first 40 days. This is
exceptional since most of the gold produced so far has come from the first
two lifts of ore on the heap leach pad, and this year's program included
3.5 lifts. Gold production will continue until the latter part of October.
Due to the earlier-than-anticipated gold production, the company's
draw-down of the project loan from Barclays Bank, which provided the
startup capital, has been substantially less than anticipated for the 1997
season.
Another highlight of this year's program at Golden Bear is the grade of the
ore stacked on the pad, which has so far averaged 3.5 g/t gold, about 16%
higher than projected. Furthermore, cyanide consumption has been less than
10% of that forecast. Approximately 354,000 tonnes have been mined and
stacked on the leach pad during 1997, and mining of ore has been completed
for the season. It will recommence in May 1998. Meanwhile, the liner for
the second heap leach pad has been put in place, ready to begin leaching
next year.
Gold production this year is forecast at 25,000 ounces, rising to an
average of 45,000 ounces during the next four years. Capital costs of
starting the Golden Bear heap leach mine this year were $4.8 million and
will be a further $5 million over the life of the mine. Cash production
costs during the five year mine plan are expected to be US$232 per ounce.
About 80% of the gold has been sold forward at US$379 per ounce. At its
peak operation this summer, the mine employed 61 people directly and a
further 73 people through contractors.
regards
gmweber |
