THE Canadian mining company, Sacre Coeur Minerals (SCM), which commenced gold mining here last year but ceased due to problems with equipment and a failed deal with the owned Severstal, has resumed operations and sale to the Guyana Gold Board (GGB). SCM announced, last Thursday that, with its new high capacity dredge operating at designed throughput rates and recent installation of new refinery at its Million Mountain location in the Mazaruni Mining District, it is producing at a significantly increased rate.
Local informed sources said that development will impact favourably on national production for 2011 and the foreign exchange earned from the precious metal.
President and Chief Executive Officer of SCM, Mr. Gregory Sparks said: “We are very pleased that, as a result of the installation of new mining and refinery equipment and with adjustment of our mining procedure, the alluvial programme is beginning to contribute net cash flow to significantly offset the company’s operating expenses.
“Based on the success experienced to date, with further refinements to the existing system and the addition of more production unit(s), the company believes it will be able to completely cover its total costs and, perhaps, add to its cash position from its alluvial production programme.”
The alluvial mining programme is being carried out on deposits in the vicinity of Sacre Coeur’s hard rock resources and exploration targets at Million Mountain.
Alluvial deposits refer to clay, silt or gravel carried by rushing streams and left where the flow slows down, such as valleys or at the base of mountains.
Sparks had, earlier, said that, apart from the alluvial mining, the company remains unflaggingly committed to its primary objective of identifying and developing major hard rock gold deposits on its more than 1,000 square kilometres.
It intends to further expand its alluvial operations to include multiple operating units in order to fully exploit the alluvial gold resource potential on its properties concurrent with its ongoing exploration programmes, he informed.
SCM has, up to last week Thursday, sold 84.4 Troy ounces of bullion to the GGB since the modifications to the mining system and refinery were completed.
Its new equipment has the capacity to process all mine concentrate produced and enables it to efficiently produce relatively high purity ‘dore’ bullion ingots without the use of mercury and the usage of several gravity concentration devices to ‘clean’ mine concentrates will increase the company’s recovery rate.
Since the new mining and refinery equipment were commissioned, the production was 5.24 troy ounces gold per day but has increased to 8 Troy ounces daily.
SCM receives payment for gold sold to the GGB at the London PM daily fix after royalties are deducted.