Sacre-Coeur Minerals Announces Alluvial Gold Production and Sales Underway
SACRE-COEUR MINERALS, LTD. (the 'Company') today announced that
with its new high capacity dredge operating at design throughput rates,
and with recent completion of installation of new refinery equipment,
gold production has increased significantly from its properties located
in North-central Guyana. A systematic grade control program has been
implemented to keep mining focused on just the alluvial 'pay zone? to
minimize mining dilution. A booster pump has been installed in the water
supply system for the monitors to increase pressure and volume to break
up cemented gravel and to move more material to the plant, now that the
dredge has ample capacity to handle more than 50 cubic meters of
alluvial gravel per hour.
New equipment in the refinery, which processes mine concentrates,
includes a Falcon centrifugal concentrator and attendant screens and
materials handling equipment, final gravity cleaning equipment and an
electronically controlled smelting furnace. The new equipment, which has
ample capacity to process all mine concentrate produced, enables the
Company to efficiently produce relatively high purity dore bullion
ingots without the use of mercury. Use of secondary and tertiary gravity
concentration to 'clean? the mine concentrate has shown that slightly
more than 50% of the recovered gold particles are smaller than 100 mesh
(150 microns), with more than half of this fraction consisting of
particles smaller than 100 microns.
Since the new mining and refinery equipment has been commissioned, 90.2
tr oz Au has been produced from 17.2 days (24hrs) of operation, for an
overall average production since completion of the modifications of 5.24
tr oz Au/day. Gold production continues to improve as the mining crews
become more familiar with the equipment, and as refinery procedures are
optimized. Average production for the past two days has increased to
over 8 tr oz Au/day.
To date 84.4 tr ounces of dore bullion having a fineness of
approximately 940 fine (94% Au) have been sold to the Guyana Gold Board
since the modifications to the mining system and refinery have been
completed. The Company receives payment for gold sold to the Guyana Gold
Board priced at the London PM fix on the day of settlement, less 5% net
smelter royalty payable to the Government of Guyana. The Company also
pays a 2% net production royalty under its mining agreements, which is
settled and paid quarterly.
Estimated cash operating costs per day, including direct production
costs plus indirect costs associated with the alluvial program are US
$3,206 / operating day. These costs, in addition to actual known costs,
include a projection of certain periodic costs, including replacement of
wear metal, replacement of pipe and fittings due to attrition through
operation at design rates, and maintenance and repair projections for
pumps and heavy equipment. Actual experience over a protracted operating
period may vary.
We are very pleased that as a result of the installation of new mining
and refinery equipment, and with adjustment of our mining procedure, the
alluvial program is beginning to contribute net cash flow to
significantly offset the Company′s operating expenses. Based on the
success experienced to date, with further refinements to the existing
system, and with the addition of more production unit(s) the Company
believes it will be able to completely cover its total costs, and
perhaps add to its cash position from its alluvial production program.
Cautionary Statement
The alluvial mining program being carried out by the Company as
described herein is being carried out on alluvial deposits in the
vicinity of its hard-rock resources and exploration targets. None of the
alluvial material being mined and processed can be considered a Resource
under National Instrument 43-101. Though the area of alluvial gold
deposition on the Company′s properties is substantial, the quantity that
can be economically mined and processed by the methods currently being
utilized is indeterminate. Variations in gold grade, susceptibility of
contained gold particles to gravity concentration, and other
depositional variables can have significant impacts on the economics of
alluvial production of gold. The Company has not completed sufficient
studies of these variables to predict future alluvial production or the
economics thereof.
Technical Staff
The Company′s alluvial program is overseen by Mr. Bjorn Jeune, a Senior
Project Geologist, assisted by Mr. Michael Howard, Mining Engineer.
Exploration is directed by Mr. Henry Salvado, Registered Geologist and
Exploration Manager for the Company. Mr. Salvado is assisted by Mr.
Jeune and Mr. Wilmar Ladia, Sr. Project Geologist. Mr. Ardito
Martohardjono a Director of the Company, and a laboratory specialist is
providing direction of the refinery and provides assistance with lab
protocols, sample handling procedures, and assay quality control. The
alluvial program and exploration are under the overall supervision of
Mr. Gregory B. Sparks, P. Eng., President and CEO. The undersigned and
Mr. Salvado are qualified persons under NI 43-101.
About Sacre-Coeur
The Company is engaged in the acquisition, exploration, development, and
production of properties for gold, metals and diamonds in South America,
initially focussing on exploration and production of gold from its
properties in Guyana. The Company presently holds 100% interest in
approximately 1000 sq. km of mineral properties in Guyana, including the
Million Mountain Property which hosts an NI 43-101 compliant hard-rock
resource of 12,119,285 tonnes grading 1.0 g/t Au Measured, and 2,175,278
tonnes grading 0.9 g/t Au Indicated for a total 451,000 tr oz Au
combined. A further update of this hard-rock resource is planned for
nominal year end 2011. The Company has offices in Vancouver, Canada and
Georgetown, Guyana. More information about the Company is available at <www.scminerals.com>.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SACRE-COEUR MINERALS, LTD.
'Gregory B. Sparks?
Gregory B. Sparks, P. Eng.
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. The
statements made in this press release may contain certain
forward-looking statements that involve a number of risks and
uncertainties. Actual events or results may differ from the Company′s
expectations.
SACRE-COEUR MINERALS, LTD.
Gregory Sparks, President and CEO
Email:
greg@scminerals.com
Phone:
604-899-0100
Fax: 604-899-0200
or
Don Mosher-B&D Capital,
Corporate Consultant
Email: don@scminerals.com
Phone:
604-899-0100
Mobile: 604-617-5448
Fax: 604-899-0200