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Mexico

El Castillo Mine

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Overview

Mine TypeOpen Pit
StageResidual leach
Commodities
  • Gold
  • Silver
Mining Method
  • Truck & Shovel / Loader
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SnapshotThe El Castillo mine was an operating open pit heap leach gold mine. In the fourth quarter of 2022, the El Castillo mine ceased mining operations and is now in residual leaching. During the 2023 year, site activities included leaching of the ore placed on the pad in the fourth quarter of 2022 and re-leaching to rinse the pads as part of the reclamation process.

For 2024, site activities include releaching to rinse the pads as part of the reclamation process. As a result, minimal production is expected in the first half of 2024.

The majority of site activities in 2024 will be focused on reclamation.
Related AssetEl Castillo Complex

Owners

SourceSource
CompanyInterestOwnership
Minera Real del Oro S.A. de C.V. (operator) 100 % Direct
Florida Canyon Gold Inc. 100 % Indirect
July 15, 2024 - Florida Canyon Gold Inc. is a newly listed company formed pursuant to the spin-out of the United States and Mexican operations of Argonaut Gold Inc., including the Florida Canyon mine in Nevada, U.S.A. and the San Agustin mine, La Colorada mine, San Agustin mine, El Castillo mine, and Cerro del Gallo project in Mexico.

Florida Canyon Gold Inc. owns the El Castillo mine through Minera Real del Oro, S.A. de C.V. (formerly a subsidiary of Argonaut Gold Inc.), which owns and operates the mine.

July 17, 2024 - Florida Canyon Gold Inc. announced that it has entered into a binding agreement to sell its interests in the San Agustin mine, El Castillo mine, La Colorada mine, Cerro del Gallo project and San Antonio project (collectively the Mexican Business Unit) to Heliostar Metals Ltd.

The Transaction is expected to close in the third quarter of 2024.

Deposit type

  • Porphyry
  • Intrusion related
  • Epithermal

Summary:

Deposit Type
El Castillo is interpreted to be a porphyry-style gold system related to Eocene granodiorite– diorite porphyries that intrude Cretaceous clastic and carbonate sediments in an extensional tectonic setting. Gold mineralization occurs throughout the magmatic-hydrothermal system in space and time and is related to sulphide mineralization spatially associated with early potassic development and genetically related to an overprint of phyllic alteration. Supergene alteration, formed as a product of acid leaching, has resulted in argillic-quartz alteration assemblages within the oxide zone of the deposit. The main gold event is believed to be associated with magmatic hydrothermal fluids corresponding to phyllic alteration.

The El Castillo gold system is similar to that found at Andacollo, Chile (Reyes, 1991 and Oyarzun, et al., 1996). Andacollo is a Cretaceous diorite to granodiorite porphyry copper-gold system with central porphyry copper-gold mineralization related to a classic porphyry alteration assemblage and a distal sediment-hosted (manto) low sulphidation and epithermal-level gold satellite system. Fluid inclusion work by Oyarzun et al. (1996) indicates that the manto epithermal gold deposits may in fact be related to another intrusive that has not been recognized at the surface due to high temperature fluid inclusions (about 365ºC) that are found about 5 km from the porphyry centre.

Supergene oxidation of shallow (<200 m) pyrite-gold mineralization is the most important factor affecting mine viability at El Castillo. Oxidized or partially oxidized transition and sulphide material located relatively near surface is a main component of the Mineral Resources and mine plan. The depth of oxidation has been strongly influenced by the density and depth of natural rock fracturing, total pyrite content of hypogene mineralization and the thickness of post-mineral cover. The deeper sulphide portion of the mineral system remains open at depth.

Mineralization
The moderately dipping granodiorite–diorite sills, siltites and argillites are the most favourable host lithologies. Argillic–quartz alteration is often closely associated with the intrusive contacts and can be indicative of higher-grade zones of mineralization.

The dominant controls on the gold mineralization include structural channeling along contacts between intrusive sills and metasedimentary units and a broad zone of northeast-striking, steeply-dipping faults and fractures that acted as conduits to help spread mineralization. Gold precipitation may be somewhat dependent on a chemically-favourable environment within the sediments but does not appear to be strongly influenced by rock composition. The hydrothermal fluids and their contained metals are believed to have been derived from a magmatic source and are a primary volatile component of the porphyry intrusion that is host to much of the mineralization.

Gold is spatially and genetically associated with pyrite occurring as disseminations, fracture fillings and stockworks often occurring within areas of hydrothermal brecciation. Within the mine the host environment for gold mineralization is dominated by an alternating pattern of sediments and parallel intrusive sills that strike to the northwest and dip moderately to the northeast. The sedimentary units generally vary from 20 m to 40 m thick, as do the intrusive sills. Many of the sills appear to have intruded along bedding planes by splitting the tabular sedimentary blocks into their present positions. This geologic event resulted in the unique alternating pattern of sediments and intrusive sills that are observed throughout the mine area. Extensive fracturing and brecciation of the sedimentary blocks, especially along contacts, created favourable secondary permeability for the deposition of gold mineralization predominately associated with pyrite. As a result, the northwest-striking sediments are often better mineralized than the surrounding intrusive rocks.

There is typically a transition zone of partially oxidized mineralization that lies between the fully oxidized material and lower non-oxidized, sulphide material. The transition zone varies from 5 m to 50 m thick and is generally influenced by degree of fracturing and level of erosion.

The sulphide zone is generally identified by the presence of pyrite mineralization. The occurrence of sulphides, either fracture-related or disseminated, is usually a good indicator of gold mineralization. The sulphide veinlets are most commonly 0.5 cm to 4.0 cm wide.

There are two preferred trends to mineralization. The most obvious of these reflects the generally stronger mineralization within the sedimentary units. The favourable permeability related to increased fracturing within the sediments enhanced the distribution and broader geometry of mineralization. The second trend of mineralization is to the northeast and reflects the dominant structural controls to mineralization. These structures are considered to be important conduits that helped channel the mineralizing system. The combination of these geologic controls resulted in a northeast-elongated gold zone that measures approximately 1,800 m by 1,500 m.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityUnits2024202320222021202020192018201720162015
Gold Equivalent oz  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe66,509 48,311 59,540 
Gold oz  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe65,14547,85759,00062,23579,751
Silver oz  ....  Subscribe  ....  Subscribe
All production numbers are expressed as metal in doré. ^ Guidance / Forecast.

Operational metrics

Metrics20222021202020192018201720162015
Stripping / waste ratio  ....  Subscribe  ....  Subscribe  ....  Subscribe1.49 1.4 1.28 1.48 1.53
Ore tonnes mined  ....  Subscribe  ....  Subscribe  ....  Subscribe8,914 kt8,801 kt8,140 kt11,139 kt10,787,049 t
Waste  ....  Subscribe  ....  Subscribe  ....  Subscribe13,293 kt12,303 kt10,407 kt16,450 kt16,506,926 t
Total tonnes mined  ....  Subscribe  ....  Subscribe  ....  Subscribe22,207 kt21,104 kt18,547 kt27,589 kt27,293,975 t
Tonnes processed  ....  Subscribe  ....  Subscribe  ....  Subscribe8,867 kt8,840 kt8,164 kt
Daily mining rate  ....  Subscribe  ....  Subscribe  ....  Subscribe75 kt75 kt

Production Costs

CommodityUnits20242023202220212020201920182017
Cash costs (sold) Gold USD  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe 1,201 / oz **   1,016 / oz **   918 / oz **  
All-in sustaining costs (sold) Gold USD  ....  Subscribe  ....  Subscribe  ....  Subscribe
^ Guidance / Forecast.
** Net of By-Product.

Operating Costs

Currency2022
OP mining costs ($/t milled) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe

Financials

Units202220212020201920182017
Capital expenditures M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 13.2   16.7   35.3  
Sustaining costs M USD  ....  Subscribe
Revenue M USD
Operating Income M USD
Gross profit M USD

Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jul 30, 2024
....................... Subscription required ....................... Subscription required Subscription required Jul 30, 2024
....................... Subscription required ....................... Subscription required Subscription required Jul 30, 2024

EmployeesContractorsTotal WorkforceYear
...... Subscription required ...... Subscription required ...... Subscription required 2023
...... Subscription required ...... Subscription required ...... Subscription required 2022
...... Subscription required 2021
...... Subscription required 2020

Aerial view:

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