Thursday, 28th December 2006 (2483 views)

Metallica Resources, a Canadian gold mining company, has been busy with readying its Cerro San Pedro project in Mexico.

Located 20 kilometres from the city of San Luis Potosi in central Mexico, the Cerro San Pedro project has been prestripped at a high cost which required Metallica Resources to raise an additional $34.5 million (£17.6 million).

The project has been a historical centre of gold mining with evidence of exploration dating back as far as 1575, but Metallica Resources acquired it in 1995 and entered into a joint venture with Cambior in 1997.

Since 2003 Metallica has reverted to being sole owner of the project which is now estimated to have a total annual average production of 90,500 ounces of gold.

Silver is also mined at Cerro San Pedro and the annual average production of the precious metal amounts to 2.1 million ounces.

Mineral reserves are currently estimated to be approximately 69.9 million tonnes and the average grade is 0.55 grams of gold per tonne.

The company has a general focus on the Americas and co-owns another prominent gold project in Chile.

 

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