The Cerro San Pedro gold-silver, heap-leach project is expected to produce 80,000 to 100,000 ounces of gold and 2.25 million ounces of silver, annually, over an estimated mine life of nine years. The mine realized its first gold sale in May of 2007. By December 31, 2007, the project was cash flow positive.
As of December 2008, the Cerro San Pedro mine contained estimated mineral reserves of 71.7 million tonnes grading 0.55 grams per tonne gold and 22.3 grams per tonne silver at a waste-to-ore ratio of 1.07:1. This equates to 1.27 million ounces of gold and 51.4 million ounces of silver.
Operating Statistics
| Cerro San Pedro |
2007 |
2008 |
2009 Forecast |
| Ore milled tonnes (000's) |
6,536 |
8,917 |
n/a |
| Milled grade Au g/t |
0.51 |
0.6 |
n/a |
| Total Recovery Au % |
25% |
49% |
52% |
| Total Production Au (K.oz) |
26.8 |
84.6 |
90 - 100 |
| Milled grade Ag g/t |
23.91 |
24.17 |
24.75 |
| Total Recovery Ag % |
8% |
16% |
15% |
| Total Production Ag million oz |
0.4 |
1.1 |
1.1 - 1.3 |
| Total Cash Cost US$/oz 1,2 |
1,237 |
432 |
550 - 570 |
| CAPEX US$ M |
3,410 |
3,050 |
2.8 |
- Net of silver by-product revenues.
- The cash cost for 2007 include start-up costs and 8 months of production from May to December 2008.
Project History
At Cerro San Pedro historic mining activity dating from the mid-1600’s until the late 1940’s produced an estimated 2.5 million ounces of gold and 40 million ounces of silver from high grade ore bodies mined primarily from underground. In the 1970’s interest shifted toward evaluating the district’s potential for a bulk mineable gold-silver resource amenable to modern open pit mining and heap leach processing methods. These efforts have culiminated in the successful development of New Gold’s Cerro San Pedro mine.
Metallica Resources acquired an option to purchase the Cerro San Pedro project in 1995 and began exploring the district’s potential for a bulk mineable old-silver resource. In January 1998, Cambior Inc. entered into an agreement with Metallica to acquire a 50% interest in the project and by November 1999 had delivered a feasibility study for the project. In May 2000, Cambior sold its 50% interest to Glamis Gold Ltd., and in November 2000, Glamis published an updated feasibility study for the project based on run-of-mine ("ROM") heap leaching (ore is mined and transported to the leach pad without being crushed). In February 2003, Metallica Resources purchased Glamis' 50% interest in the project for US$18 million to become 100% owner and operator of the project, and in March 2004 purchased a net smelter returns royalty from Glamis for US$2.25 million. Franco Nevada Inc. retains a 1.90% Gross Proceeds production royalty for the project. Following the merger with Metallica Resources Inc. and Peak Gold Ltd. on June 30, 2008, New Gold now owns a 100% interest in the Cerro San Pedro project, through its wholly-owned subsidiary Minera San Xavier, S.A. de C.V.