September 30, 2004
Venezuela sees Choco gold mine producing by December
(Reuters) - "Venezuela's state gold mining company expects to bring its joint venture Choco mine into production by December, project officials said.

Choco 10 in the El Callao region of southeast Bolívar state, which is 70 percent owned by Canadian miner Bolivar Gold Corp. has estimated proven gold reserves of 1.7 million ounces.

Venezuela's state holding firm Corporación Venezolana de Guayana (CVG) is a partner in the project.

'We are finishing the construction stage for basic infrastructure, specifically such as installing a primary crushing machine,' José Francisco Arata, a director of the joint venture, said in a statement.

Venezuelan officials expect Choco to produce around 80,000 to 90,000 ounces next year and later produce 125,000 ounces annually at an operating cost of around $180 and $200 an ounce.

Gold is currently bid at $417.65 an ounce on the spot market in New York, with COMEX most-active December futures fetching $419.80 an ounce.

The plant has the capacity to process 6,000 tonnes a day of raw ore material, but officials expect to install a third mill to bring processing capacity to around 10,000 tonnes a day.

Venezuela, the world's No. 5 crude oil exporter, wants to increase gold output at state-owned mines by 50 percent by 2006 with a drive to cut operating costs. Officials forecast 2006 output at 164,500 ounces at a cost of $200 an ounce compared with output of 108,500 ounces at $256 an ounce this year".