• Bear Creek’s (BCM) to produce 65,000 to 75,000 ounces of gold at its Mercedes mine this year
  • A 49 per cent increase compared to 2022
  • The average cash cost per gold ounce will be around $830 to $940, with an all-in-sustaining cost of around $1,200 per gold ounce
  • Mine planning and development is shifting toward higher-grade deposits utilizing cut-and-fill mining methods
  • There has also been an addition of ore from Marianas, San Martin and Rey de Oro, which the company hopes will improve the overall grade profile
  • Bear Creek Mining (BCM) is up over 3 per cent, trading at C$0.68 at 11:26 am EST

Bear Creek Mining (BCM) is set to produce around 70,000 ounces of gold this coming year at its Mercedes Gold Mine.

According to the company, the average cash cost per gold ounce will be around $830 to $940, with an all-in-sustaining cost of around $1,200 per gold ounce.

The company recently underwent an improvement program which wrapped up in January. The results showed an improvement base which it can work off of this year.

Mine planning and development is shifting toward higher-grade deposits utilizing cut-and-fill mining methods, with the hope of increasing production.

As infrastructure development in previously shut-down operations returns to safe levels, they will be brought with the expectation of increasing the mill feed grade.

Mercedes Gold Mine

Two deposits on the area, The Marianas and San Martin, started adding to production this year. Going forward the company hopes these will add to results and continue to be developed.

“Improvements in mine production, dilution control and maintenance are being realized and approaching targeted levels, thereby creating confidence that we will realize the potential of Mercedes,” said Eric Caba, President and Chief Operating Officer of Bear Creek Mining.

Ore from Rey de Oro should be delivered to the mill in March.

There has also been an addition of ore from Marianas, San Martin and Rey de Oro, which the company hopes will improve the overall grade profile throughout the year.

The expectation, given the results, is that Mercedes will be operating at an annualized 74k to 86k ounces of gold production with sustaining costs of around $1,000 per ounce.

Q1 2023Q2 2023Q3 2023Q4 2023Full Year 2023
Gold Ounces (k)11.5 – 13.516.5 – 18.518.5 – 21.518.5 – 21.565 – 75
Silver Ounces (k)39 – 4553 – 6158 – 6760 – 70210 – 243
AISC/gold ounce ($)1,700 – 1,9701,160 – 1,330950 – 1050950 – 10501,120 – 1,290
Cash cost/gold ounce ($)1,110 – 1,275830 – 950710 – 810750 – 875830 – 940
2023 quarterly progression of production

Eric Caba was thrilled to find out about the 49 per cent increase in gold production. “We are pleased with the progress at Mercedes. Turning around an operation requires dedication and focus [from] the entire management team.”

Bear Creek Mining (BCM) is up over 3 per cent, trading at C$0.68 at 11:26 am EST.


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