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REGIONAL NEWS - LATIN AMERICA tion, expected early in 2014. We estimate that we have sufficient cash to fully finance the project, which is currently on-budget and on-track to meet our proposed mill commis- sion in the second half of 2013." The Escobal project is based on under- ground mining, utilizing low-cost develop- ment and production methods; a processing plant employing crushing, grinding, and dif- ferential flotation to produce lead and zinc concentrates; and a dry-stack tailings facility. The mine is being developed via two primary declines for the transportation of personnel, equipment, and materials, as well as for transport of the mined resources to the surface for processing. Additional primary development will include two ven- tilation shafts and drifts connecting the primary declines. The primary declines will also serve as platforms for exploration and definition drilling. Mineral processing will use differential flotation to produce lead and zinc concen- trates for sale to third-party smelters. Test work completed to date on the sulphide resources demonstrates recoveries of 87% for silver, 75% for gold, 83% for lead, and 83% for zinc, with the majority of the pre- cious metals reporting to the lead concen- trate. Based on current test results, the lead concentrates are expected to contain very high levels of silver, between 15,000 g/mt and 30,000 g/mt, with very little in the way of penalty elements. Concentrates will be bagged and delivered to port in sea containers. Development of the underground mine began in May 2011. A total of 1,475 m of underground development had been exca- vated as of March 31, 2012. Development of the processing plant and surface support facilities/infrastructure began following gov- ernment approval of the project environ- mental impact statement in October 2011. Kinross Sells its Interest in Crixás Kinross Gold Corp. will sell its 50% inter- est in the Crixás gold mine (Serra Grande), located in the State of Goiás, Brazil,to sub- sidiaries of AngloGold Ashanti Ltd. for $220 million. "Crixás is a non-operated, non-core asset for Kinross," said Tye Burt, president and CEO, Kinross. "Its divesti- ture is consistent with our strategy of port- folio optimization, and focusing our resources on the company's core opera- tions and priority projects." Crixás' proven and probable gold reserves were approximately 750,000 oz as of December 31, 2011, and the mine was expected to produce 70,000 gold equivalent oz in 2012. Buenaventura Reaches Agreement with Orcopampa Miners Compañia de Minas Buenaventura S.A.A. reached an agreement within the frame of annual collective negotiations on June 8, 2012. Operations have resumed. The Orcopampa Union began a strike midnight May 26, 2012. The strike was declared illegal by the Peruvian Ministery of Labor. Buenaventura S.A.A. is Peru's largest publicly-traded, precious metals mining com- pany and a major holder of mining rights in Peru. The company currently operates several mines in Peru (Orcopampa, Pora- cota, Uchucchacua, Antapite, Julcani, Recuperada, El Brocal, La Zanja, Coimolache and CEDIMIN). It also owns 43.65% of Minera Yanacocha S.R.L (a partnership with Newmont Mining Corp.); 19.35% of Sociedad Minera Cerro Verde, a Peruvian copper producer, and 49% of Canteras del Hallazgo S.A, owner the Chucapaca project. www.e-mj.com JUNE 2012 • E&MJ; 27