TORONTO (miningweekly.com) – The TSX-V-listed stock of Glen Eagle Resources rose on Thursday, after it announced that a cyanide circuit for its processing plant in Honduras was nearing completion.
The Montreal-based miner expected to receive the first technical tests for the expansion next week, with the plant expected to be fully operational by early January.
Following the expansion, the maximum daily throughput was expected to be between 70 t/d and 80 t/d, owing to improved efficiency, add-on capacity and the availability of softer mineral supplies.
Glen Eagle stated that the add-on circuit would make the plant more versatile and adaptable to the local mining industry, while improving recovery. The existing flotation circuit would remain functional to process minerals containing heavy sulphides, which represented the most efficient means for the local miners to recover their gold.
The average grade processed since June was 6 g/t gold, as reflected in subsidiary Cobra Oro's production records. During the period, daily throughput was set back considerably, varying between 20 t/d and 30 t/d, owing to frequent power supply shortages and processing coarse minerals that had slowed down crushing.
To avoid further power shortages, the company had introduced a generator capable of supplying energy for the entire plant.
All-in costs, including operation, administration and transportation costs were projected to be about $55 000 a month, based on prorate adjustments from production records and accounting data accumulated over the last six months. The current all-in cost was $33 000 a month, Glen Eagle said.
Cobra Oro, in April, signed a three-year contract with Inversiones Pacuari to supply Cobra Oro’s processing plant with 100 t/d of mineralised material grading on average 5 g/t gold and 130 g/t silver.
Glen Eagle had plans to add another ball mill to increase daily throughput at the plant to 120 t/d and to make the appropriate plant site modifications to support the extra volume.
The company's stock climbed 42.85% on Thursday, to close at C$0.05 apiece.