Canadian mining company, Sacre-Coeur Minerals has begun to sell gold produced at its Million Mountain operation here.
Initial shipments totalling 30 troy ounces will be sold to the Guyana Gold Board this week, the company said in a press release yesterday. The company is currently “test-mining” at Million Mountain ‘Alluvial Zone 2’ and says that this is an important milestone in the development of the company’s alluvial gold deposits here.
Following the initial shipments, production will be periodically sold to the board as the company continues testing operations while it prepares for full-scale production. Gold produced by Sacre-Coeur is purchased by the Board at London PM fixing price on the day of settlement, less royalty payable to the government equal to 5% of the settled value. Output is expected to gradually increase as the company moves incrementally into full-scale production from its first operating unit over the next few months
The release said gold sales from the test mining programme will help offset the costs associated with ramping up to full-scale production, as well as Sacre-Coeur’s ongoing hard-rock gold exploration programme. “The goal of the company at full-scale alluvial production is to reach cash self-sufficiency with respect to all of its operating and exploration costs through revenue generated by its alluvial mining activities,” the release stated.
It said that while the company remains unflaggingly committed to its primary objective of identifying and developing major hard-rock gold deposits on the more than 1,000 sq km of properties it holds in Guyana, it also expects to further expand its alluvial operations to include multiple operating units in order to fully exploit the alluvial gold resource potential on it properties concurrent with its ongoing exploration programmes.
Last month Sacre-Coeur had said that the focus of the test mining programme was to provide a bulk sampling opportunity to confirm the adequacy and accuracy of the initial test pitting programme; examine the distribution and character of gold contained in the various alluvial strata; determine the material handling characteristics of the overburden and the alluvial zone to optimize for production scale mining operations, and develop the most effective concentrate refining techniques and parameters. It had said that the programme was proceeding well and had fulfilled its objectives.
“Our strategy is to continue operating the test operation as a pilot plant to gather additional information and generate revenue while we are preparing the equipment for regular production,” the company had said. It had said that though cost estimation for gearing up was just beginning, the total costs are expected to be relatively modest, at less than Cdn$200,000.
Sacre-Coeur, a Canadian mining company, is engaged in the acquisition, exploration and development of properties for the potential mining of gold, metals and diamonds in South America, initially focusing on exploration for gold on its properties in Guyana. The company has an interest in 1000 sq. km of mineral properties in Guyana, including the Million Mountain Property, its website says.