Contact Information:
El Sauzal Mine
Minas De La Alta Pimeria S.A. de C.V.
Obregon 854 Pte.
Col. Centro
Los Mochis Sinaloa CP 81200
Tel: 011/52-668-816-0180 Ext. 302
Fax: 011/52-668-816-0189
Contact: Luis Felipe Medina, Administrative Manager
Location: The El Sauzal mine is located in Chihuahua, Mexico approximately 155 miles southwest of the state capital, Chihuahua City, and some 40 miles northeast of the city of Chiox, Sinaloa, which is the nearest population center. The property lies within the Batopilas and Urique mining districts in the southwestern part of the state, and is 100 percent owned by Glamis Gold.
Project Description: The El Sauzal mine is Glamis Gold’s newest and largest gold mine. Acquired through the Francisco Gold Corp. merger, construction began in mid 2003 and mill start-up occurred in October 2004, months ahead of the original schedule. More than 25,000 ounces of gold were produced in 2004, and the mine is on track to produce 170,000 ounces in 2005.
El Sauzal is an open pit conventional oxide-milling project. Mill capacity was optimized at 5,500 tonnes per day and annual production is projected to average 190,000 ounces of gold at an estimated total cash cost of $110 per ounce over a 10-year mine life. The project internal rate of return, based on a $300 per ounce gold price, exceeds 25 percent. The timely and successful development of the El Sauzal project was a top priority for Glamis, and a key step in achieving the Company’s production goal of 700,000 gold ounces per year at total cash cost below $150 per ounce.
Exploration: To date, a proven and probable gold reserve of nearly two million ounces has been defined at the El Sauzal property. Initially, the opportunity to substantially increase reserves appeared limited. However, recent work indicates the potential to extend mineralization away from the existing pits and in the Trini, East Extension, and other target areas is increasing. Glamis is actively exploring around the deposits and on the rest of its concession area. Glamis controls a total of 12 concessions covering an area of more than 36,000 hectares surrounding the El Sauzal deposit.
El Sauzal Arroyo Pit Cross SectionProven and Probable Reserves
as of Dec. 31, 2005
Gold reserves calculated at $400 per ounce.
|
Tonnes |
Au |
Au Ounces |
Ag |
Ag Ounces |
| El Sauzal | 15,821,000 |
3.29 |
1,673,000 |
3.72 |
1,890,000 |
Proven and Probable Reserves are a subset of Measured and Indicated Resources
Measured and Indicated Resource
as of Dec. 31, 2005
Measured and Indicated Resources, for purposes of determining a reasonable expectation of eventual economic extraction, are estimated using a $500 per ounce gold price.
|
Tonnes |
Au |
Au Ounces |
Ag |
Ag Ounces |
| El Sauzal | 20,529,000 |
2.73 |
1,802,000 |
3.80 |
2,488,000 |
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