Latinnews Archive
Latin American Economy & Business - 23 May 1986
Mining for a bright future;EXPLORATION & STUDIES YIELD MAINLY PROMISING RESULTS
Gold mining in the Dominican Republic and Haiti was in the past carried out on a small scale by the early settlers, and sporadically by farmers panning gold from rivers. Now gold mining by mechanised means is becoming more important.
In the Dominican Republic, Rosario Resources has been working on exploration, development and operation of the Pueblo Viejo gold deposits in Cotui. In Haiti, the best prospects for mining operations are at the Milot deposits. No large-scale mining activity in the country exists at present. Only construction materials are produced by the Haitian mineral industry: copper mining by Consolidated Halliwell in the Meme area stopped 14 years ago, and the Miragoune bauxite operation, run by Reynolds Metals, was shut down in 1983. A Haitian mining company, La Geomineral d'Haiti SA, is now in the process of trying to initiate activities at Milot.
A look at mining activities in both countries:
The Dominican Republic
The Pueblo Viejo gold mine in the area of central province of Sanchez Ramirez, operated by Rosario Dominicana, produces 1,000 ounces of gold daily. It is an open pit mine on deposits that are located in the oxidised zone.
With advances made in operations in the oxidised zone, Rosario has carried out an active exploration programme through geological mapping, geochemical sampling and drilling. Additional oxide zone ore has been defined, but reserves should still last only four to five years.
Pre-feasibility studies, followed by recently completed feasibility studies by Fluor Corp of the US, show that the sulphide zone gold deposits at Pueblo Viejo, in the area of Montenegro, can be exploited. The deposits have reserves sufficient for 15 to 20 years of operation. The feasibility study will be presented to the IDB which has received a request for financing US$280m for the exploitation of the sulphide zone deposits. Total cost of the operation will run closer to the US$400m mark, however; costs beyond the US$280m will be met by the government through commercial banks.
Rosario gold exports currently earn the government some US$100m a year; production from the sulphide zone operations would increase earnings by some US$160m.
Exploration
All other gold activities are to date still in the exploration stage. In the El Yujo area (Jarabacoa district), the Spanish mining company, Hullera Vaco-Leonesa, and the Dominican government are undertaking a joint 50-50 exploratory project in a vein-type copper deposit which also holds zinc and gold. Work to date by Minera Dominicana El Yujo (as the joint company is called) which began last year and is to last initially for three years, has consisted of geological mapping, and geochemical and geophysical investigation to define drill locations. Preliminary drilling is under way.
The directorate-general of mines has carried out further exploration in the Restauracion area in the western part of the country, near the border with Haiti. Preliminary work, also by Rosario Dominicana, shows that gold mineralisation may be present, which makes the area interesting enough to investigate (though definite targets have not yet been encountered).
The Restauracion area is part of a district which extends into Haiti (Mt Organize and the Ferrier area -- south-east of Fort Liberte) where there have been indications of occurrences of mineralisation.
UNDP projects
Two joint investigations by United Nations Development Project (UNDP) geologists and the Dominican directorate-general of mines of alluvial gold occurrences have been carried out at Miches, in an area of 700 square kilometres, and in the river Mao basin in an area of some 750 sq km. Their aim was to assess the potential for large-scale mining. Reports show that little -- if any -- potential exists at Miches, while in the river basin the results are not yet conclusive and further work may be warranted.
Gold mining in Haiti
Gold exploration activities have been concentrated mainly in the northern part of the country. Tributaries of such rivers and streams as Lamatry, Giseaux (area of Acul des Pins), Jasse, Maboule, Mt Organize, have in the past carried small concentrations of alluvial gold which have been the sites of rudimentary exploitation.
But Milot, some 12 km south of the northern coastal city of Cap Haitien, is so far the only area which has prospects of becoming a gold mining operation in the future.UNDP geologists and the UN Revolving Fund for Natural Resources, with geologists from the ministry of mines, have been collaborating in studies and exploration of gold deposits in the area. A mineable ore body has been found there, located in the zone of oxidation where there is about 2mt of ore material averaging 2.25 grammes of gold per tonne. The area is amenable to open-pit mining, and access to the property is excellent. (A road leads from Cap Haitien right to the deposit.) The ore at Milot includes zinc, copper and lead. Cyanide leaching tests undertaken in Sparks, Nevada at the Western testing Laboratories showed recovery of gold of around 74%.
Exploration
At Limbe, 35 km south of Cap Haitien, the ore deposit is still in the exploration stage. The best gold-bearing perimeter in the area is located on Morne Grand Bois. At Limbe, silver is more abundant than at Milot and the deposit also contains barite.
Return to top