Sacre-Coeur Minerals announces Alluvial Gold Production and Sales Underway
Sacre-Coeur Minerals Announces Alluvial Gold Production and Sales Underway
Sacre-Coeur Minerals Ltd. (SCM – TSX Venture, S5N – FWB), (the “Company”) today announced that with its new high capacity dredge operating at design throughput rates, and with recent completion of installation of new refinery equipment, gold production has increased significantly from its properties located in North-central Guyana. A systematic grade control program has been implemented to keep mining focused on just the alluvial “pay zone” to minimize mining dilution. A booster pump has been installed in the water supply system for the monitors to increase pressure and volume to break up cemented gravel and to move more material to the plant, now that the dredge has ample capacity to handle more than 50 cubic meters of alluvial gravel per hour.
New equipment in the refinery, which processes mine concentrates, includes a Falcon centrifugal concentrator and attendant screens and materials handling equipment, final gravity cleaning equipment and an electronically controlled smelting furnace. The new equipment, which has ample capacity to process all mine concentrate produced, enables the Company to efficiently produce relatively high purity dore bullion ingots without the use of mercury. Use of secondary and tertiary gravity concentration to “clean” the mine concentrate has shown that slightly more than 50% of the recovered gold particles are smaller than 100 mesh (150 microns), with more than half of this fraction consisting of particles smaller than 100 microns.
Since the new mining and refinery equipment has been commissioned, 90.2 tr oz Au has been produced from 17.2 days (24hrs) of operation, for an overall average production since completion of the modifications of 5.24 tr oz Au/day. Gold production continues to improve as the mining crews become more familiar with the equipment, and as refinery procedures are optimized.
Average production for the past two days has increased to over 8 tr oz Au/day.
To date 84.4 tr ounces of dore bullion having a fineness of approximately
940 fine (94% Au) have been sold to the Guyana Gold Board since the
modifications to the mining system and refinery have been completed. The
Company receives payment for gold sold to the Guyana Gold Board priced at the London PM fix on the day of settlement, less 5% net smelter royalty payable to the Government of Guyana. The Company also pays a 2% net production royalty under its mining agreements, which is settled and paid quarterly.
Estimated cash operating costs per day, including direct production costs plus indirect costs associated with the alluvial program are US $3,206 / operating day. These costs, in addition to actual known costs, include a projection of certain periodic costs, including replacement of wear metal, replacement of pipe and fittings due to attrition through operation at design rates, and maintenance and repair projections for pumps and heavy equipment. Actual experience over a protracted operating period may vary.
We are very pleased that as a result of the installation of new mining and refinery equipment, and with adjustment of our mining procedure, the alluvial program is beginning to contribute net cash flow to significantly offset the Company’s operating expenses. Based on the success experienced to date, with further refinements to the existing system, and with the addition of more production unit(s) the Company believes it will be able to completely cover its total costs, and perhaps add to its cash position from its alluvial production program.
Cautionary Statement
The alluvial mining program being carried out by the Company as described herein is being carried out on alluvial deposits in the vicinity of its hard-rock resources and exploration targets. None of the alluvial material being mined and processed can be considered a Resource under National Instrument 43-101. Though the area of alluvial gold deposition on the Company’s properties is substantial, the quantity that can be economically mined and processed by the methods currently being utilized is indeterminate. Variations in gold grade, susceptibility of contained gold particles to gravity concentration, and other depositional variables can have significant impacts on the economics of alluvial production of gold.
The Company has not completed sufficient studies of these variables to predict future alluvial production or the economics thereof. Technical Staff
The Company’s alluvial program is overseen by Mr. Bjorn Jeune, a Senior Project Geologist, assisted by Mr. Michael Howard, Mining Engineer.
Exploration is directed by Mr. Henry Salvado, Registered Geologist and Exploration Manager for the Company. Mr. Salvado is assisted by Mr. Jeune and Mr. Wilmar Ladia, Sr. Project Geologist. Mr. Ardito Martohardjono a Director of the Company, and a laboratory specialist is providing direction of the refinery and provides assistance with lab protocols, sample handling procedures, and assay quality control. The alluvial program and exploration are under the overall supervision of Mr. Gregory B. Sparks, P. Eng.,
President and CEO. The undersigned and Mr. Salvado are qualified persons
under NI 43-101.
About Sacre-Coeur
The Company is engaged in the acquisition, exploration, development, and production of properties for gold, metals and diamonds in South America, initially focussing on exploration and production of gold from its properties in Guyana. The Company presently holds 100% interest in approximately 1000 sq. km of mineral properties in Guyana, including the Million Mountain Property which hosts an NI 43-101 compliant hard-rock resource of 12,119,285 tonnes grading 1.0 g/t Au Measured, and 2,175,278 tonnes grading 0.9 g/t Au Indicated for a total 451,000 tr oz Au combined.
A further update of this hard-rock resource is planned for nominal year end 2011. The Company has offices in Vancouver, Canada and Georgetown, Guyana.
More information about the Company is available at www.scminerals.com.
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