The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Tuesday, 31st March 2009 (753 views)

A new deal has been agreed between Castle Gold and mining contractor CAMSA.

Castle Gold is hoping the new contract will allow the firm to increase gold production by 50,000 ounces over the course of a year.

CAMSA is the existing mining contractor at Castle Gold's El Castillo property in Durango State, Mexico but will now use larger equipment at the site to complete drilling, the transfer of the mine material to the leach pads, blasting, hauling of waste and the movement of high-grade material to the screening plant.

Ten quotes from interested contractors were reviewed by Castle Gold in the process, eventually selecting the original Monterrey-based contractor.

President and chief executive of the firm Thomas Atkins stated: "We're eager not only to be able to begin producing more ounces of gold with this equipment, but also to capture these operating cost savings."

Castle Gold recently posted results from a study of the mineral resources at the EL Castillo site, which found 0.7 g/t of gold for 624,712 ounces of contained gold.

 

« Back to Gold News stories