Mercedes Mine’s First Full-Production Quarter Shows Solid Results
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Mercedes Mine’s First Full-Production Quarter Shows Solid Results

Photo by:   Bear Creek Mining
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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Tue, 10/11/2022 - 15:40

Bear Creek Mining reported its 3Q22 production results, a milestone for the company as it marks the first full quarter of production from its recently acquired Mercedes Gold Mine in Sonora. The company highlighted that it expects even better results in 4Q22 as it works to improve production.

Among the highlights of 3Q22 production is that the company processed 148,211 tons of ore, with an average rate of 1,611t/d. In addition, it produced 11,169oz of gold, representing a 14.9 year-over-year increase in mine production. Bear Creek explained that the positive results are the result of operational improvement work that began shortly after acquiring the mine. Additionally, the company expects to improve production in 4Q22 through continued development work to access higher-grade deposits.

“Our focus at Mercedes is to safely increase throughput to achieve higher gold production.  The operational improvement program we initiated shortly after acquiring Mercedes began bearing fruit during Q3 2022, with tonnage, gold production and development meters all trending higher throughout the quarter. We are extremely pleased that these production increases were achieved without a single lost time accident.  Management has identified several cost reduction opportunities, and measures are being implemented to continue to increase production while lowering operating costs. These measures are expected to be realized through the remainder of 2022,” said Anthony Hawkshaw, CEO, Bear Creek Mining.

The company recently reported that it has decided to implement a 32-week performance improvement program at its Mercedes mine to reopen mining areas and achieve higher production rates, as well as reduce costs. The program has a US$2.15 million cost and is expected to be completed in January 2023. Bear Creek emphasized that the Mercedes mine has strong potential for several improvements, which will not only lead to the growth of the project but will lay the foundation for the future of the company.

In April, Bear Creek announced that it acquired the Mercedes mine, formerly owned by Equinox Gold. The project was acquired for a cash payment of US$75 million, the issuance of 24,730,000 Bear Creek shares, a deferred cash payment of US$25 million due in six months and a 2 percent net smelter return on Mercedes’ production. Equinox explained that it decided to sell the mine because it did not consider it to be a key asset, as in 2021 it only represented 5 percent of its production guidance and 2 percent of its resources. However, Bear Creek believes that the acquisition of the Mercedes mine has taken the company to the next level, enabling it to transition from a development-stage company to a precious metals producer.

Photo by:   Bear Creek Mining

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