Canada's Calibre Mining bought from B2Gold Nicaragua, the El Limón and La Libertad gold mines, as well as the Pavon project and other concessions, in a transaction that totaled $100 million.
The El Limón and La Libertad mines have produced more than 1.4 million ounces of gold since 2010, and their combined production of gold in 2019 is projected to be between 150,000 and 160,000 ounces, the company said in a statement.
In the last six years capacity mining production in the country has tripled and it is expected to increase even more with the startup of two new projects.
According to Denis Lanzas Cisneros, vice president of the Chamber of Mines of Nicaragua, one of the main reasons behind the growth of the sector in recent years is the regulatory framework which established the Mining Act, which "...
Three companies from the U.S. and Canada have acquired concessions rights for exploratory mining, with investments of about $5 million.
The new concessions add to those already existing in the country, in which a total of $12.7 million have been invested between January and May 2011, according to the Ministry of Energy and Mines (MEM).
Karla Guerrero, director of the Mining Chamber of Nicaragua told reporters that of the total investment, about $10 million has been earmarked for exploration and that at the current rate, investment could top 2010 levels of $20.7 million.
In 2010 the production of gold troy ounces increased by 88% and silver by 56%, generating $ 226.67 million in sales.
The Nicaraguan Chamber of Mines (Caminic), argues that with the successful production in 2010 of 156 thousand troy ounces, the country ranks among the top ten producers in Latin America.
"Nicaragua should position itself within the top twenty exporters (worldwide), it is a matter of continued exploration and build two or three more mines," said to La Prensa Sergio Rios, president of Caminic and manager of Hemco Nicaragua S.A.
Calibre Mining announced the results of their drilling program on the La Luna and Riscos de Oro projects within the Borosi Concessions.
The company intercepted 2810 g/t silver and 17.85 g/t gold over 0.95 metres within a larger interval of 8.53 metres grading 384.86 g/t silver and 4.23 g/t gold. These were highlighted by the highest grade gold and silver assays intercepted to date by Calibre on the Riscos de Oro epithermal gold-silver project.
The Orosi Mine, owned by Canadian corporation B2Gold Corp., commenced gold and silver production.
According to a press release issued by the company, the first dore bar was produced on January 5th, 2010.
B2Gold expects to produce approximately 80,000 to 90,000 ounces of gold per year at an estimated average operating cash cost of approximately $465 per ounce with an initial seven year mine life.