BOLIVAR ACHIEVES RECORD GOLD PRODUCTION AT TOMI
TORONTO, June 3/CNW/ - Bolivar Goldfields Ltd. is pleased to announce that Tomi gold production for the month of May was approximately 6,000 ounces, a direct result of the first month of operation utilizing the full capacity of the newly expanded and refurbished Revemin processing plant.
Under a revised mining plan, Tomi is expected to produce 66,000 ounces in 1999 at an average operating cash cost of $ 118 per ounce. The Company has sold approximately 80% of its 1999 gold production forward at an average price of $ 294 per ounce.
The processing plant has now reached its planned full capacity of 1,500 tonnes per day and passed the mechanical completion test approved by the banks' consultant, engineering firm SRK. With the processing plant completed and the mine operation in full swing, the Company is now preparing for the performance test mandated by the banks.
As part of the refurbishment and expansion process, a second crusher line and a 10-by-20 foot mill (100HP) were installed. Additionally, four new leach tanks with 275-cubic-metre capacity were installed and the existing five tanks turned into absorption tanks.
The Tomi mine was financed through a $20.0 million loan facility made available by Barclays Bank PLC and Standard Bank London, Limited, comprised of a $16.0 million senior loan and $4.0 million of subordinated debt. The senior debt is scheduled for repayment by March 31, 2003. To date, the Company has met all fee and interest payment requirements, totalling $1.6 million. The first scheduled debt payment of $1.4 million will be made this month with quarterly payments due thereafter.
The Company is pleased with what has been accomplished to date and is confident that the Tomi mining plan will be successfully executed. The Company is looking with confidence beyond the present plan towards extending the mine life of Tomi and pursuing the many opportunities in gold mining that Venezuela offers. |
