Monday, 31st March 2008 (764 views)

Environmental permits for the construction, operation and maintenance of a new gold mine in Nicaragua have been issued by the country's government, the company behind the scheme has announced.

Central Sun Mining said it has received the permits from the Nicaraguan Department of Environment for the Orosi mine project, which is located approximately 110 kilometres from the country's capital, Managua.

The company is currently working on converting the Orosi project from a heap leach operation to a conventional milling system.

Central Sun said once this is complete, gold recoveries are expected to increase from 38 per cent to around 90 per cent based on using conventional million techniques and "extensive" metallurgical testing.

Production at Orosi is expected to get underway in the first quarter of 2009, with an initial output target of 85,000 ounces of gold per year, rising to 125,000 ounces of gold per annum.

A mineral reserve and updated resource estimate is also being prepared for the site, the company confirmed.

The Orosi mine is Central Sun's second project in Nicaragua, after the Limon mine which is currently producing 1,000 ounces of gold per day.

 

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