Yanacocha to Increase Reserves 40 Percent
biz.yahoo.com
Tuesday October 20, 3:30 pm Eastern Time
Company Press Release SOURCE: Newmont Mining Corporation
LIMA, Peru, Oct. 20 /PRNewswire/ -- Minera Yanacocha, Latin America's largest gold producer, announced today that extensive drilling and metallurgical testing during 1998 will allow it to increase gold reserves to approximately 20 million ounces by year-end. This represents a 40 percent increase from year-end 1997 reserves of 13.9 million ounces despite depletion of 1.5 million ounces this year.
Drilling of 420 holes totaling approximately 39,000 meters is expected to add 4.0 million ounces of reserves at the La Quinua deposit, discovered last year. The current reserve base there is 3.0 million ounces. Another 1.7 million ounces are expected at Yanacocha Sur following metallurgical testing. The combined Yanacocha Sur, Norte and Oeste deposits currently have reserves of 7.2 million ounces.
Total combined reserves and mineralized material not yet in reserve for Minera Yanacocha will increase to approximately 23 million ounces this year from 19.4 million ounces last year. Reserves at Minera Yanacocha have increased three-fold over the last two years, while combined reserves and mineralized material have more than doubled.
Minera Yanacocha, located in Northern Peru, is 51.35 percent owned by Newmont Mining Corporation of Denver, 43.65 percent by Lima-based Compania de Minas Buenaventura, S.A. and 5 percent by the International Finance Corporation (IFC).
In comments to a group of analysts here, Minera Yanacocha General Manager Carlos Santa Cruz noted that the mine will reach the 20 million-ounce reserve mark after being in production for only five years. To date, Minera Yanacocha has produced 3.75 million ounces of gold.
Santa Cruz said gold production for 1998 will increase to 1.3 to 1.35 million ounces from 1.0 million ounces in 1997 and will rise further to 1.4 to 1.5 million ounces in 1999. The reserve additions at La Quinua will allow Minera Yanacocha to maintain production at this level for several years.
La Quinua will require the addition of a fourth leach pad at a modest capital cost of $60 million, Santa Cruz said. It will utilize existing processing facilities. Production at La Quinua is scheduled to begin at the end of 2000, allowing for continued definition drilling of the El Tapado deposit, located under La Quinua. Total cash costs at La Quinua are estimated to be $150 per ounce. A recovery rate of 65-70 percent is assumed for the deposit. Average grade at La Quinua is 0.025 ounce per ton.
Yanacocha Sur is currently in production. The new reserve ounces at Yanacocha Sur include ore that is transitional in nature, with a combination of both oxide and sulfide mineralization. Metallurgical tests conducted this year indicate the material can be processed through existing leach facilities with recoveries of 50 to 60 percent. Average grade at Yanacocha Sur is 0.035 ounce per ton.
SOURCE: Newmont Mining Corporation |
