Para fuels gold expansion plans by scoring (another) near-term production asset
Earlier today, Para Resources Inc. (TSXV: PBR) (“Para”) announces that it has (yet) again, taken advantage of current market conditions to acquire near-term production assets. In fact, today Para expanding their holdings in Arizona to include adjacent claims in the Oatman District where more than 2.3 million ounces of gold had previously been produced pre-1942 prior to the US war effort and were considered “high-grade underground veins at that time”.
Just last month (Nov 15) Para announced the restart of production at the El Limon Mine in Zaragoza, Colombia with a new throughput of 225 tons per day (“TPD”) and a production cost of $700/tonne.
The increase in productivity marks an improvement of 125 TPD from previous throughput.
El Limon’s original startup took place in May/June of 2017, after a US$ 7 million rehabilitation and plant upgrade of legacy equipment. That initial planned production ramp up was hampered by a throughput constraint at the filter press, a bottleneck that prevented production from reaching the nameplate capacity of 225 TPD.
The grade from the El Limon underground operations continues to be within the predicted range of 7–9 gram per tonne gold. Also Para plans to increase the current purchases of mineralized rock from the local, formalized small miners who operate on the Company’s mineral claims as production ramps up.
Para is a junior producing gold mining company with two major development projects: the El Limon Columbian project and the Gold Road Mine Project in Arizona. Para owns approximately 80% of the El Limon project, in Colombia, which in addition to its current underground operation is purchasing mineralized rock mined by small artisanal miners working on the Company’s property. The Company also owns 88% of the Gold Road Mine in the Oatman District of Arizona.
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On October 23, 2017, Para announced that it has entered into agreements with multiple parties to secure access to additional mineral claims and historic mines adjacent to its Gold Road Mine and Mill in the Oatman Mining District in Northwestern Arizona.
The Oatman District is the largest primary gold producing district in Arizona with a historical gold production including Gold Road (not equivalent gold) ay more than 2.38 million ounces. The vast majority of the production has come from two sub parallel vein systems, the Gold Road system and the Tom Reed-United Eastern (Tr-Ue vein) system. In addition to these two systems there is a third vein system, the Pioneer- Midnight system, which is southwest of the Tr-Ue system for which production records are mostly unknown.
The mill is a 500 TPD carbon in pulp mill that has historically achieved typical recovery of 93 to 95% on run of mine mineralized material. Minimal recommissioning cost are expected as the mill last ran in July of 2016. Permitting is complete for the 500 TPD mill to be increased to 1,000 TDP and tailings capacity for 1,750,000 tons (10 years @ 500tpd) has been constructed. An additional 1,800,000 tons of tailings capacity has been permitted but not constructed. Milling cost is approximately $25/ ton at a grind of 90% passing 320 mesh.
On September 26, 2017, Para announced it had decided to focus its efforts on the El Limon and Gold Road projects, which have the potential to produce greater than 25,000 ounces of gold per year and currently have considerable exploration upside. To that end, the Company has entered into an agreement to divest itself of the Tucuma property in Brazil and has terminated the agreement to acquire 80% of Nicaragua Milling Company Limited.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>