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SAN JUAN MINE - Milling

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 > LAMAQUE GOLD MINE

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 >SAN JUAN GOLD MINE

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Reserves / Resources

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 Century’s 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.

 

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