Rio Alto Mining Limited RIOAF

PDAC upate

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PDAC-Rio Alto sees gold output from Peru mine by end April






TORONTO, March 6 (Reuters) - Rio Alto Mining
expects the first gold production from its La Arena project in
Peru by the end of April, and the exploration company is
working on expanding the size and scope of its project.

The project, which has oxide and sulphide components to the
deposit, has a little more than 4 million ounces in gold
resources in all categories. It also has a copper resource of
2.9 billion pounds.

The initial gold production will come from the oxide
portion, which is expected to produce about 75,000 ounces of in
the first year. The oxide deposit is expected to produce
100,000 ounces of gold annually thereafter over six years.

"We are now very close to having everything completed in
preparation for our first bar of gold," said Chief Operating
Officer Alex Black said on Sunday.


Black was speaking on the sidelines of the annual PDAC
mining convention in Toronto. The event brings together
hundreds of exploration companies and their larger counterparts
from across the globe. It is expected to attract more than
20,000 delegates this year, as metals prices are on a tear and
the mood in the industry is bullish.

Gold rose above $1,430 an ounce last week, as widening
clashes in Libya prompted investors to pile into safe havens.
Bullion recently hit a record high of $1,440.10 an ounce on
fears that the unrest could spread across the Arab world.
For more stories on the PDAC convention [ID:nN02153893]
(Reporting by Euan Rocha; Editing by Frank McGurty)