Thursday, 22nd December 2005 (3319 views)

A gold mining company in Canada has increased its estimate of the gold resources at its disposal at a particular site by 261,000 ounces.

The figures for Desert Sun Mining's Jacobina site in Bahia have increased from 24.8 million tonnes grading 2.53 grams of gold per ton to 27.9 million tonnes grading 2.57 grams of gold per ton.

In terms of actual ounces of gold, the estimate has increased from 2.05 million to 2.31 million ounces.

The company also raised its estimate of inferred minerals in the Bahia gold belt to 33.6 million tonnes grading 2.80 grams of gold, containing 3.03 million ounces of gold.

The company's president, Bruce Humphrey, told Reuters that this increase was "significant".

He added that the ability of the company to turn 75 per cent of inferred resources into indicated resources, and 75 per cent of this amount into proven and probable reserves, remained on course.

Desert Sun Mining began producing gold at the Jacobina mine in July this year, and has produced around 55,000 ounces to date at an average cost of US$10 per ounce.

 

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