2012 Mulatos Operating and Development Budget
The 2012 Mulatos capital and development budget is $26.0 million and includes the following key items:
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Capital Expenditure - Mexico
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2012 Budget
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Capitalized pre-stripping costs
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$9.7 million
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Construction
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$3.0 million
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Crusher improvements
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$5.4 million
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Sustaining Capital
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$7.9 million
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Total
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$26.0 million
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2012 Mulatos Exploration Budget
The 2012 Mulatos exploration budget is $8.6 million. The Company expects that approximately 65% of the 2012 exploration costs in Mexico will be expensed.
A minimum of 22,500 metres (“m”) of reverse-circulation (“RC”) and core drilling is planned at Mulatos, with a focus on the following targets:
- San Carlos Northeast – 5,000 m
- Compadres – 4,500 m
- East Estrella – 3,000 m
- Mulatos Mine Area (Escondida, El Victor North, and El Victor South) – 10,000 m
In addition to the drill programs outlined above, the Company also has a large reconnaissance-level exploration program planned for 2012 to assess several of its regional grassroots targets, including Puerto del Aire, San Nicolas, La Dura, La Palma, El Halcon and West Halcon, and Ostimuri.
