Altaley Mining Corp has welcomed its pre-production results during mill commissioning at its Tahuehueto gold mine project in Mexico, where, it says, recoveries and concentrate grades continue to improve.
There is currently one ball mill operating in a commissioning phase with a current capacity of 350 tpd (tonnes per day). The nameplate 500 tpd capacity is expected to be completed before the end of the first quarter this year, said Altaley, subject to a successful forthcoming rights offering.
Excellent precious metal recoveries have been achieved since September 1 last year, averaging 89.95% gold and 83.23% silver, with a peak daily recovery of gold at 97.52% and silver 92.33%, the miner revealed.
Over the same period, there were average base metal recoveries of 76.68% for lead concentrate and 54.31% for zinc concentrate.
READ: Altaley Mining identifies 'robust, deliverable' production plans for 2023 at both Mexico mines with CEO review
"We have been very pleased with the progressive improvements in the pre-production plant performance at Tahuehueto, thanks largely to the team on site and helped by the mining of higher-grade ores from the Creston vein," said Mike Struthers, CEO of Altaley.
"Early pre-production was largely from stockpiled material, and some of this was partially oxidized which impacted on the plant performance. However, the fresh ores are performing well, in line with expectations from metallurgical testwork," he added.
"This gives us confidence in future plant performance. Some initial challenges with zinc suppression in the lead circuit were resolved, so we are now producing zinc concentrates with grades above the minimum commercial specification.
"The precious metals grades in our lead concentrates are also especially pleasing with, for example, an average of 55.74 g/t gold and 693.2 g/t silver in December."
In the statement, Altaley also said it had struck a debt settlement with an arms’ length mining contractor over C$1,176,297 it owed for underground mine development work.
The company has agreed to issue the creditor with 735,186 common shares at a deemed price of C$1.60 each, which will extinguish and settle the debt.
Altaley Mining holds two wholly-owned Mexican gold, silver, and base metal mining projects. Tahuehueto is in northwestern Durango State, Mexico, and is generating gold, silver, lead, and zinc in concentrates.
Campo Morado is an operating polymetallic base and precious metals mine currently producing at an average of 2,400 tpd and is currently estimated to be Mexico’s sixth largest zinc producer and is progressively increasing its copper revenues.
Contact the author at giles@proactiveinvestors.com