MEXICO With a positive feasibility report in hand, GAMMON LAKE RESOURCES of Dartmouth, N.S., is raising as much as $110 million for development of the Ocampo gold/silver mine in Chihuahua State. The money is to be raised through the sale of special warrants.
Site preparation for a mill and heap leach construction will begin in January 2005, says Gammon Lake. Mine production will begin in the first quarter of 2006 at a rate of 11,400 tonnes/day from an open pit and 1,500 tonnes/day from an underground mine. Production will average 270,000 oz of gold-equivalent (170,000 oz of gold and 6.2 million oz of silver) per year over the first seven years of mining, at an average cash cost of US$151.74/oz.
The Ocampo deposit is estimated to contain perhaps 7.5 million oz of gold-equivalent. Measured and indicated reserves are estimated at 39.25 tonnes grading 1.46 g/t Au and 61 g/t Ag. In the inferred category, the estimate is 21.16 million tonnes grading 3.75 g/t Au and 188 g/t Ag.
Gammon Lake is planning a second phase of development for the project when it can outline an even larger resource. The company has posted its latest presentation (to the Las Vegas Gold and Precious Metals Investment Conference last September) on its website, www.GammonLake.com. The presentation contains details of the proposed Ocampo development.