Cerro San Pedro

Mon, 10/21/2013 - 09:58

Cerro San Pedro is a gold-silver heap-leach operation located in the state of San Luis Potosi in central Mexico, about 20km east of the state’s capital city. The mine is wholly owned by New Gold, an intermediate gold producer, through its Mexican subsidiary Minera San Xavier.

The Cerro San Pedro deposit is characterized by an upper zone of gold and silver mineralization within limonitic iron oxides and a lower zone of zinc and lead sulfide mineralization. Commercial production at Cerro San Pedro began in May 2007 with an estimated mine life of 10 years. The mine’s processing facilities are equipped with a lined heap leach pad that heads to a traditional Merrill-Crowe gold and silver recovery circuit.

During 2012 Cerro San Pedro produced 137,555oz of gold at a total cash cost of US$232 per ounce, as well as 1.9 million ounces of silver. Gold production declined from 143,747oz in 2011, as a result of reductions in both ore grades and ore tonnes placed in the leach pad. Cerro San Pedro is forecast to produce 140,000-150,000oz of gold and 1.4-1.6 million ounces of silver in 2013 at a total cash cost of US$375-395 per ounce. The increase in gold production is driven by the higher gold grades more than offsetting an expected decrease in tonnes processed. At the end of last year the mine had 800,000oz of proven and probable gold reserves, and 1.7 million ounces of measured and indicated gold resources.

The Cerro San Pedro Mine has a strong record of compliance with Mexican and international environmental, health and security standards. In recognition of the operation’s exemplary safety record, Cerro San Pedro received the prestigious Silver Helmet Award from Camimex, which is granted to the safest mining operation in Mexico in the category of open pit operations with fewer than 500 employees.