- RRR: Ongoing Disposal
- Gold Assets sold in 2015 for $5M
- RRR Received $1M Promissory Note Repayment
- $3M Royalty Still to be Paid
- Long Term Production Goal of 25,000oz per Year
Located in Northwest Colombia near the town of Zaragoza, Antioquia, the site is part of the Zaragoza Gold District, which hosts a number of primary underground gold mines and is considered one of the most prolific gold zones in Colombia.
The El Limon mine is operating underground on Levels 6 and 7 where the diluted head grade continues to be over 8 g/t Au. The vein system is open at depth but constrained on both ends by faults and the current operator believes the property offers multiple exploration targets that could significantly increase the life of the mine. In addition to processing ore from the mine itself the operator intends to buy in order from over 60 nearby independent gold mining operations.
The operations were sold to a group of experienced gold investors and developers in 2015. Total consideration to RRR was USD$5M with RRR still due a USD$1M promissory note as well as up to USD$3M in royalty payments.
Current activities at El Limon include both the working mine as well as the attached milling operation. Recent upgrades at the mine include widening the shaft and upgrading the co-located winch to remove processing bottlenecks as well the installation of a second ball mill, new thickener, new flotation circuit, and upgraded CIP process circuit. Overall mill throughput has been increased to 200tpd for mined rock.
The existing processing setup at El Limon consists of two stage crushing, milling, gravity separation, flotation, cyanidation, and Merill-Crowe precipitation and smelting. Mining costs are estimated to be between $85-95 a ton and processing costs between $65-75 per ton. Cash flow break even is estimated to be around 450oz a month. Production levels during commissioning were just under 200oz a month and are ultimately expected to rise to 25,000oz per year.
More information may be found regarding current operations at the plant and mine from http://pararesourcesinc.com/.