Gold Reserve Inc. (TSE: GLR.A – NASDAQ: GLDR) is pleased to announce that bench scale
testing of the applicability of the Cominco Engineering Services Limited (CESL) on-site copper
process was successful; as the process achieved 99 percent recovery of both gold and copper
compared with typical off-site smelter recovery and payable metal of 95 to 96 percent after
deductions.
The CESL process utilizes an autoclave for pressure oxidation of the concentrates followed by a
series of leaching sequences to recover the copper and gold. Implementation of the CESL
process would eliminate significant transportation costs for the copper gold concentrates to an
off-site smelter and improve the Brisas project economics. Revised cost estimates, in
accordance with the Gold Institute guidelines, result in cash operating costs of $177 per ounce
of gold net of copper revenues (using $0.80 per pound copper and the CESL process). Total
after-tax costs are estimated at $262 per ounce of gold (including operating costs, working
capital, initial capital and life of mine capital net of copper revenues less sunk costs).
The Company is also pleased to announce that drilling has recently re-commenced on the
Brisas property. The Company believes that this drill program could add 750 thousand ounces
of gold and 100 million pounds of copper to the proven and probable ore reserves. Prior to
commencing this current drilling program, the current estimate of proven and probable ore
reserves is 5.6 million ounces of gold and 654 million pounds of copper (using $300 per ounces
gold and $0.80 per pound copper).
Rockne J. Timm, President & CEO stated, "We are extremely pleased with the test results of
the CESL process and accordingly, the Company will proceed to the next phase and increase
the quantity of the concentrates to be tested. In addition, if the current drill program is
successful, total costs could be reduced to less than $250 per ounce of gold. Also, since our costs
are determined net of copper revenues, the price of copper is an important factor in
determining production costs. For every $0.10 increase in the price of copper, our total costs
decline by approximately $12 per ounce of gold. With copper at $0.90 per pound, coupled with
an increase in reserves and on-site copper production, our total projected costs could be less
than $240 per ounce."
Gold Reserve Inc. is developing the Brisas gold copper project in southeastern Venezuela and is
well financed with over US $21 million in cash and investments and no long-term debt. |
