Lachlan Star (ASX: LSA) now has a 936,000 gold ounce JORC Resource at the CMD Gold Mine in Chile, estimated by Coffey Mining, with the potential to increase in the short term with resource statements for other projects currently pending.
The total exploration targets at CMD are currently between 600,000 and 900,000 gold ounces, which is in addition to the JORC Resource.
It must be remembered Lachlan has only owned the CMD mine for just over a month, and is looking to increase gold production in the short term.
CMD is an open pit heap leach gold mine that commenced production in 1995 and has produced around 830,000 gold ounces.
Forecast production is 9,000 gold ounces for the March quarter 2011, increasing to 12,000 gold ounces for the June quarter.
Of major importance for the ability to ramp up production, is the underutilised 8 million tonne per year production facility, which is currently running at just one third capacity.
The project is well positioned adjacent to Teck's massive Andacollo mine which hosts resources of; 535 million tonnes grading 0.37% copper and 0.12g/t gold, providing prospective copper exploration upside in the region.
Lachlan is also developing a plan for an intermediate pit in the central area of the Las Loas project, which will accelerate ore production and reduce the stripping ratio over the next 6 months
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