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NewsBot Date: December 1, 2005 12:21:00 PM
GLG News Glamis Announces Commercial Production at Marlin Mine and Updates Mineral Resource Estimates at Cerro Blanco Project
RENO, Nev.--(BUSINESS WIRE)--Dec. 1, 2005--Glamis Gold Ltd. (TSX:GLG)(NYSE:GLG) today announced that its Marlin Mine in Guatemala has commenced commercial production, remaining on track to produce 20,000 ounces of gold in 2005. Marlin is expected to produce approximately 250,000 ounces of gold and 3.5 million ounces of silver in 2006.
The Marlin mill has demonstrated designed throughput capacity of 220 tonnes per hour and gold recoveries are currently 90%. Mill crews continue to fine-tune the circuit in order to achieve overall production objectives. Surface mining activities are on plan, with grades of over six grams per tonne being realized from near-surface ore zones. Underground operations are proceeding on three development levels in preparation for significant contributions from underground production by mid-2006. Regional access affected by Hurricane Stan has been largely reestablished and the project substation is now receiving electricity from the Guatemalan power grid.
Cerro Blanco Project
New drilling results at the Cerro Blanco project in southeastern Guatemala have resulted in an updated mineral resource estimate. The Company had previously announced an inferred resource for Cerro Blanco of 873,000 ounces of gold. Additional drilling carried out during 2005 has resulted in an updated mineral resource of 1.27 million ounces of gold in the indicated category at an average grade of 15.7 grams per tonne and an additional 0.67 million ounces of inferred resource at an average grade of 15.3 grams per tonne. Gold resources were defined within underground mineable shapes using a cutoff grade of approximately 8.0 grams equivalent per tonne. The total estimated indicated resource for silver at Cerro Blanco is approximately 5.87 million ounces at an average grade of 72.0 grams per tonne and an inferred resource of 2.59 million ounces at an average grade of 59.6 grams per tonne.
The new mineral resource includes drilling results along 0.9 kilometer of strike length and to a depth of 350 meters. The deposit remains open to the north and south and at depth, and further drilling is continuing with eight rigs currently active on the property. Surface sampling suggests that the gold system could extend an additional 1.5 kilometers to the north and an unknown distance to the south beneath valley fill. The entire Cerro Blanco drill hole data base can be accessed on the company web site at www.glamis.com.
The Company continues to conduct baseline environmental work, permitting, hydrology studies, facility scoping and metallurgical testing with the intent of developing an underground mine. A feasibility study for Cerro Blanco is expected to be completed in late 2006, with development starting at completion of the study. Initial production is targeted for late 2008.
"We are very pleased with Marlin's performance as it continues to meet our expectations and is well on its way to becoming our largest mine. The excellent results from our latest round of drilling at Cerro Blanco validate our further growth prospects in Guatemala," said Kevin McArthur, President and Chief Executive Officer of Glamis Gold. "We are committed to building and running quality mining operations in Guatemala and developing partnerships that will provide benefits to the surrounding communities, the country of Guatemala and Glamis shareholders."
Glamis Gold Ltd. is a premier intermediate gold producer with low-cost gold mines and development projects in Nevada, Mexico and Central America. Plans call for growth from over 400,000 ounces of gold production in 2005 to over 700,000 ounces in 2007. The Company remains 100 percent unhedged.
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, include, but are not limited to those with respect to, the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, Glamis' hedging practices, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variation of such words and phrases or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Glamis to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, possible variations in ore grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Other Considerations" in the Glamis Annual Information Form. Although Glamis has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
