Peru's Yanacocha says gold reserves to rise 40 pct
biz.yahoo.com
Tuesday October 20, 7:05 pm Eastern Time
LIMA, Oct 20 (Reuters) - Latin America's largest gold miner, Peru's Minera Yanacocha S.A., said Tuesday reserves will grow 40 percent by the end of the year, to 20 million ounces, due to the results of exploration works.
This year's production at Yanacocha, a joint venture run by U.S. firm Newmont Mining Corp (NYSE:NEM - news) in the northern Andes, will total 1.3 to 1.35 million ounces, up from 1.0 million ounces in 1997, according to a statement from Newmont.
Yanacocha predicted last year that 1998 production would total about 1.15 million ounces.
The mine's production in 1999 will rise to between 1.4 million ounces and 1.5 million ounces, a level which will be maintained for several years, Tuesday's statement quoted Yanacocha's general manager Carlos Santa Cruz as saying.
Peruvian mining analysts said the announcement of the reserves increase came as no surprise.
In May, the Yanacocha joint venture between Newmont and leading locally-owned miner Buenaventura (NYSE:BVN - news) said it expected to add 5.5 million ounces this year to its then-total reserves of 14 million ounces.
The company said this increase would come by converting possible mineral resources into proven and probable reserves.
The gold mine's reserves have now increased three-fold over the last two years, Tuesday's statement said.
Yanacocha produces gold through heap-leaching operations at its open-pit mines in highland Cajamarca department 375 miles (600 km) north of Lima.
The mine's 25.8-tonne output in the first eight months of the year accounted for about 44 percent of the total 58.3-tonne national production, according to latest government figures. |
