Minera Florida began operations in 1986 at a processing rate of 10,000 tonnes per month producing a gold,silver and zinc concentrate for off-site treatment and by 2003 through process improvement increasing the treatment rate to 35,000 tonnes with on site dore production and production of a zinc concentrate for off-site treatment. Meridian Gold purchased Minera Florida from a private Chilean company in July 2006. In November of 2007, fifty-six flotation cells in two circuits will be replaced with one circuit of eight new cells improving gold, silver and zinc recoveries. The Company is currently working on mine and plant expansion projects increasing monthly treatment to 65,000 tonnes and annual gold production to over 120,000 gold equivalent ounces. This project is expected to be completed by year-end 2008.
OVERVIEW
Location
Located on an area of approximately 120 square kilometers within the Alhue District, situated 73 kilometers south of Santigao in Region Metropolitana, central Chile.
Type of operation
100% of the ore is from underground operations using open stoping mining method. Process includes three stages of crushing, single stage grinding, flotation followed by leaching of the flotation concentrates and dore production through electrowinning. The leached flotation concentrate is filtered and then treated in a flotation circuit to produce and zinc concentrate for shipment. The INCO process is utilized for cyanide destruction with tailings pumped to a lined facility.
Proven and probable reserves
(at December 31, 2007)
4.1M tonnes at 4.51 grams per tonne gold = 602,000 ounces gold
4.1M tonnes at 37 grams per tonne silver = 5.0M ounces silver
Measured and Indicated Resources
(excluding reserves)
2.7M tonnes at 4.8 grams per tonne gold = 409,000 ounces gold
2.7M tonnes at 37 grams per tonne silver = 3.2M ounces of silver
Inferred Resources
2.4M tonnes at 5.18 grams per tonne gold = 402,000 ounces of gold
2.4M tonnes at 46.5 grams per tonne silver = 3.6M ounces of silver
Expected Annual Production
65,000 to 70,000 gold equivalent ounces for 2008
125,000 to 130,000 gold equivalent ounces for 2009
LOCATION HISTORY
Historically, the area has been mined for over 100 years as a vein district. The geology of the Alhué District consists of low sulfidation veins and mesothermal stockwork systems emplaced in a volcanic sequence known as Lo Valle Formation of Cretaceous age. The mineralogy is mainly native gold, electrum, galena and sphalerite.
VALUE ENHANCING INITIATIVES
By the end of 2008, the Company expects its mine and mill expansion projects to be complete. This project will increase milling capacity to over 65,000 tonnes per month and increase annual gold production to over 120,000 ounces.
With the recent acquisition of the Membrillo and Chancon districts, the Company has expanded its exploration potential, as both districts are past gold producing regions.
Numerous operational excellence initiatiaves are under way using Six-Sigma.