Minera Andes and Aurelian Resources <mneaf/mai.to>
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March 9 (Bloomberg) -- Minera Andes Inc., a Canadian mining company, said it aims to produce 120,000 ounces of gold annually by 2009 from a deposit in Argentina.
Minera, 30 percent owned by entrepreneur Robert McEwan, will begin by June to process 750 tons a day of ore from its San Jose deposit, which will yield 60,000 ounces of gold and 3.1 million ounces of silver a year, the company's President Allan Ambrose said in an interview in Toronto. Processing capacity will double within 18 months of the start of production.
In the deposit's first phase, the company is mining 3 kilometers (1.9 miles) of mineral veins, which hold an average of 7.7 grams of gold per ton, Ambrose said. Minera aims to eventually mine about 40 kilometers, which have shown similar concentrations.
Gold prices have risen about 19 percent in the past year, prompting miners to boost exploration and production. Fourth- quarter profit doubled for Toronto-based Barrick Gold Corp., the world's largest gold producer, and tripled for Denver-based Newmont Mining Corp., the second-biggest, the two companies said last month. Barrick will produce 8.1 million to 8.4 million ounces of the metal this year.
Aurelian Resources Inc., which announced in December its Fruta del Norte project in Ecuador may have ``bonanza grade'' gold deposits, said on March 7 that early tests show the site holds an average of 8 grams of the precious metal a ton. Aurelian aims to start output on its 95,000-hectare (235,000-acre) Ecuador concession as early as 2011.
Minera's shares rose 3 cents, or 1.5 percent, to C$1.99 at 11:59 a.m. in Toronto Stock Exchange trading, after climbing 9.5 percent in the preceding three days. They have gained 30 percent this year.
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