Treatment of Copper-Gold Ores at El Indio, Chile

In late 1989, LAC Minerals purchased 65% of Bond International Gold and as a result became controlling shareholder of the El Indio Mine through Bond and San Jose. El Indio is a world class, complex sulphide gold deposit located in the hydrothermal alteration belt of the Andes mountains in the 4th Region of Chile. The mine is located in the high Andes about 185 km east of La Serena at an elevation of 4000 meters. The 1450 workers at El Indio live in the mine camp at 3200 m and on days off are bussed to La Serena. The El Indio mine was started in 1979 by St. Joe Minerals Corp., bought by Bond in 1987 and subsequently by LAC in 1989. The mine has produced 2.7 million oz. of gold, 9. 5 million oz. of silver and 170,000 t of copper since start of operation. The mill is currently operating at a rate of 2850 t/d and producing a copper/gold concentrate which is roasted to produce a copper/gold calcine and high quality, saleable crude As203• A small proportion of the precious metals are also produced as bullion from the leach circuit. Total production during 1989 was 224,197 ounces of gold, 1,309,342 ounces of silver and 26,968 tonnes of copper. The average cash cost of production for the period was U.S. $96 per ounce of gold, net of by-product credits. The average realized price was $5.30 per ounce of silver and $1.14 per pound of copper.