contd17 Dec 2008 11:54
This increase in the planned production rate allows us to ramp up production and sell more gold. With cash operating costs estimated to be approximately US$131 per oz gold over the life of mine, we expect Quintana to be a low-cost producer demonstrating good profit margins. We look forward to reporting further on Quintana's operations in the near future."
The Quintana Mine is located in Remedios Municipality of the Department of Antioquia in central Colombia within the country's foremost gold mining district, the Frontino Gold Belt, which has
recorded production approaching nine million ozs since 1852. Following the completion of the feasibility study which defined a resource of 109,582 tonnes at 24.58 g/t gold and 19.85 g/t silver
(measured, indicated and inferred) containing 86,822 ozs gold, which has since been expanded by further drilling and underground development, work commenced in February 2008 to bring the mine into
production.
The project is estimated to have a NPV of US$10.8 m, based on a 50 tpd operation over five years at a gold price of US$600 per oz.