With first sales under belt, Goldsource eyes adding an excavator at Eagle Mountain

TORONTO (miningweekly.com) – Since starting commissioning activities late January, Guyana-focused gold producer Goldsource Mines recorded sales of 81.7 oz of the yellow metal on April 14, at $1 240/oz.

With a declaration of commercial production imminent, the TSX-V-listed project developer said on Wednesday that it would add a second excavator which, together with the planned installation of a larger feed pipe to the scrubber, should enable the company to hit the Phase 1 design rate of 1 000 t/d before end-June.

Goldsource reported that, so far for April, an average of 470 t/d had been processed, the equivalent of 47% of nameplate capacity. Plans to start a second shift by the end of the current quarter were also being accelerated.

The first gold pour took place on March 6.

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.

The company disclosed a gold inventory of 22.3 oz, adding that it had C$1.4-million cash left at its disposal to meet its capital requirements to complete the planned expansion over the next several months.

In February and March, engineers redesigned and refabricated the mine grizzly and processing gold room. The operation had mined about 17 919 t/y to date and processed an estimated 16 726 t of ore grading 0.76 g/t gold since earlier this year.

Goldsource estimated 45% gravity recovery rates for the plant so far, with April recoveries estimated to have increased to 50%.