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The nominal capacity of the
San Juan mill and processing plant is 700 tonnes per day
of ore. The plant, which was built in the early 1970s,
has five small mills and Merrill Crowe zinc
precipitation and CIP circuits. There are two milling
and two flotation circuits. Free gold is recovered in
jigs after milling. The CIP circuit recovers the gold
remaining in the tailings from the primary mill circuit.
A lack of capital and maintenance expenditures by the
former owner allowed the plant to deteriorate into a
state of disrepair such that the current production rate
is approximately 120 tonnes per day. The mill has
produced over 1.2 million ounces of gold in the last 35
years, an average annual production of approximately
34,000 ounces. The Company has shut
down the small Avispa treatment plant that operated in
conjunction with 17 quimbaletes using mercury
amalgamation for recovering gold from selected ores of
high gold content. The plant had a daily capacity of 30
tonnes of ore.
 The Company has
commenced a rehabilitation program to return the
processing plant to its nominal production capacity.
This will allow the mill to process the increased
tonnage of ore that will be mined as a result of new
development and mechanization of the mine. The Company
also has a program to buy ore from informal miners who
have an agreement with the Company to mine various veins
on the San Juan property and who mine veins not on
Centurys property. As a result of the
rehabilitation program the Company is projecting
production of approximately 14,000 ounces of gold in
2007, increasing to 35,000 ounces in 2008 at an
estimated cash cost of US$400 per ounce. New air
compressors and generators have already been installed.
Future plans include extending the local power line to
the mine so that the operation is not reliant on diesel
fuel for power generation. |