President: Newmont taking second look at Liam - Peru
Published: Tuesday, May 9, 2006 13:03 (GMT -0400)
US miner Newmont Mining (NYSE: NEM) is re-evaluating the Liam gold deposit in Peru to see if it makes economic sense to mine at current gold prices, company president Pierre Lassonde told BNamericas.
"We are just starting to look at whether or not it could make a small mine," said Lassonde.
"When the prices were lower, it didn't make economic sense. With today's gold prices, we are going to give it another look," said the Newmont president.
Liam, a JV with Vancouver's mineral explorer Southwestern Resources (TSX: SWG), holds about 400,000oz of gold and 10Moz of silver but has low silver recoveries of 20%, according to Lassonde.
"We are going to redo the metallurgy and if we can increase the silver recovery it might make sense," he said.
Lassonde said Newmont tended to shy away from small deposits because it was harder to provide benefits to local communities over a short mine lifespan. This was something smaller companies could do better, he said.
An exception was the 350,000oz Kori Chaca gold deposit in Bolivia where local employees convinced Newmont they could build a mine at company standards for US$24mn, said Lassonde.
Kori Chaca, which extended the plant life of Newmont's nearby Kori Kollo operation, will produce 125,000oz of the yellow metals this year.
"It is a great case where a big company acted in a small way and did everything right," said Lassonde.
Southwestern reported Tuesday that drill programs were planned in the coming months at the Liam project's Farallon-Astana, Careli and Huacullo targets.
Meanwhile, in the Gran Leon area a new "extensive gold rich system of veins" has been identified through sampling and will be advanced to drill-stage, the Southwestern statement said.
Liam is in southern Peru's Cuzco department.
By Emily Russell
BNamericas.com
bnamericas.com
tanoose......................not much capital outlay there to get 120,000 oz's/yr?? |
