Goldsource buoyant as Eagle Mountain reaches commercial production

TORONTO (miningweekly.com) – Project developer Goldsource Mines has declared commercial production at its flagship Eagle Mountain mine, in Guyana.

The company’s announcement on Tuesday resulted in buoyant trading on the TSX-V, pushing the stock 6% higher to C$0.48 apiece.

Eagle Mountain’s first phase had reached consistent production averaging a minimum of 80% of the 1 000 t/d nameplate capacity and 45% recovery in gold concentrate over a continuous 30-day period.

During the last 30 days, operations reached a maximum daily throughput of about 1 400 t, with an estimated average of 900 t/d. Gravity recovery by the Falcon concentrator was about 50%.

Goldsource advised that it would continue to optimise the operation throughout the remainder of the year and issued a production guidance of about 3 600 oz of gold for 2016.

A June 2014 preliminary economic assessment called for the openpit, gravity-plant operation to achieve post-commissioning and ramp-up cash operating costs of $500/oz to $600/oz of gold.

Starting in the third quarter, the company planned to implement a second shift and would start using a new 40 t articulating truck to increase throughput from higher-grade areas. With the planned expansion of operations, Eagle Mountain was targeting average throughput of about 1 800 t/d.