MEXICO – In light of doubled reserves, the board of GLAMIS GOLD of Reno, Nevada, has approved the development of the Penasquito gold mine in Zacatecas state. The recent feasibility study put measured resources (including reserves) at 466.6 million tonnes grading 0.47 g/t Au, 30.8 g/t Au. The indicated resource is 405.9 million tonnes at 0.44 g/t Au and 27.5 g/t Ag. Together these resources contain 12.8 million oz of gold and 822.0 million oz of silver. There are also inferred resources of 2.58 billion tonnes grading 0.17 g/t Au and 10.6 g/t Ag. As well, the deposit contains minable quantities of lead and zinc.
The cost of development is estimated at US$882 million. Total cash costs per ounce of gold (after silver, lead and zinc byproduct credits) will be US$378/oz. Glamis expects commercial production at a milling rate of 100,000 tonnes/day will be reached late in 2009.
The complete feasibility study is available at www.Glamis.com.