The first gold pour at Glamis Gold's (TSX: GLG) new El Sauzal mine in Mexico's Chihuahua state took place on November 30, the company announced.
Approximately 1,500oz of gold have now been shipped from the mine for refining and sale. Commercial production at El Sauzal is expected to start this month and higher-grade ore is now being introduced into the circuit, the company said.
The mine is currently producing approximately 600oz of gold a day and the company anticipates that 2004 production from El Sauzal will be approximately 25,000oz.
Gold recovery is exceeding the 93% rate predicted in the feasibility study, the Reno-based company said.
The ore grade has averaged 3.55g/t of gold versus 3.21g/t predicted by the orebody model.
"We fully expect to reach our production target of more than 170,000oz of gold in 2005," said company president and CEO Kevin McArthur.