VANCOUVER, British Columbia-- Cornucopia (NASDAQ:CNPGF) (TSE:CNP) announces that in orrder to reduce operating expenses and maximize cash flow in this time of a depressed gold price, the Company has elected to temporarily suspend mining and crushing operations at its
Mineral Ridge Mine in Esmeralda County, Nevada. During this period, which is expected to last about three months, leach operations will continue and gold production will proceed at an estimated rate of 3,000 ounces per month.
Since gold was first poured at Mineral Ridge on June 24, 1997, production has totalled approximately 10,400 ounces, representing a leach rate that is slower than originally anticipated.
Preliminary tests indicate that the leaching difficulty possibly originates from contaminants in the process water supply. The suspension of mining will provide an opportunity for further testing and to complete remedial actions to improve water chemistry and therefore the rate of leaching.
Total mine site inventory at October 31, 1997 of 20,500 ounces of gold was represented by 16,000 ounces in process on the leach pad and 4,500 ounces in the run-of-mine stock pile. Continued gold production from this ore will be sold at hedged prices of US $363 per ounce in November, US $394 in December 1997, and approximately US $382 in January and February, 1998. As a result of this strategy, the Company expects to maintain its liquidity until such time as the gold price recovers and/or the optimal leaching rate is attained.
Cornucopia also has a 25% working interest in the Ivanhoe Joint Venture on the Carlin Trend, Nevada, where a deep drill program has recently commenced. |
