Starcore International Mines Produces 1,466oz AuEq in 2Q24

Starcore International Mines reported its production results for fiscal 2Q24 at the San Martin Mine in Queretaro, showing a 48% decline in gold equivalent (AuEq) production compared to the previous quarter. This decrease was linked to a temporary suspension of operations while the company enhanced its safety protocols.

Starcore International Mines reported milling 48,248t during the quarter, a 3% decrease from the 49,504t milled in the previous quarter. The most significant decline was in silver grades, which fell 51%, from 20.03g/t to 9.81g/t. The company also reported a 48% decrease in AuEq production, totaling 1,466oz.

Starcore International Mines says it continues testing methods to optimize the recovery of gold and silver from its reserves of carbonaceous ore. These reserves total about 1Mt, with average grades of 3.1g/t gold and 20g/t silver. Salvador Garcia, COO, Starcore International Mines, notes that laboratory tests conducted by Kappes Cassiday in Reno, Nevada, have shown promising results. Industrial testing is expected to begin in mid-December 2024.

Operations at the San Martin mine were temporarily suspended following a workplace fatality earlier this year and resumed in October 2024 after completing safety improvements mandated by the Ministry of Labor and Social Welfare (STPS) and other authorities. “We would like to thank STPS, the Federal Attorney for Environmental Protection (PROFEPA), Civil Protection of Colon, Queretaro, and the various government officials who worked diligently with us to ensure all safety aspects were re-evaluated and elevated to the highest standards,” says Robert Eadie, President and CEO, Starcore International Mines. 

During the quarter, the company also received approval from the General Direction of Environmental Impact and Risk (DGIRA), to extend the term for managing dry stack tailings at San Martin. The approval grants Starcore International Mines an additional 10 years for tailings management. “The company submitted its environmental risk studies to the Mexican authorities, which included technical updates and modifications to its dry stack tailings from the mine operations. Starcore will continue to comply with the DGIRA requirements including mitigation, prevention, and compensation as detailed in the Environmental Impact Assessment (AIA), Environmental Risk Level 1 study, and Preliminary Risk Report as submitted by the company to DGIRA,” reads Starcore’s press release.

San Martin’s Mineral Reserves and Resources

On Sep. 23, 2024, the company updated its mineral reserves and resources.  Proven and probable reserves were estimated to contain 96,298oz of gold and 710,435oz of silver, totaling 104,962oz of AuEq. Measured and indicated resources are estimated at 97,396oz of gold and 720,623oz of silver, or 106,185oz of AuEq. Inferred resources total 47,972oz of gold and 355,856oz of silver, totaling 52,312oz of AuEq. The company noted this updated estimate marks a 27% increase in reserves compared to the 2022 estimate of 82,562oz of AuEq, reflecting growth in mineral resources since operations began in 2008. A significant portion of the reserves, 49,530oz, consists of carbonaceous ore, which has shown favorable metallurgical results with recoveries of about 70% for gold and 55% for silver.