Bridger developing 200-tpd gold mine in Chile

Earlier this year the Vancouver- based junior entered into an agreement allowing a Chilean partner to earn up to a 25% interest in the Pepa project by placing it into commercial production at the rate of 200 tons per day by the end of this year.

According to Anthony Floyd, president, mine development and construction of the gravity/flotation mill is on schedule and within the $4-million(US) budget estimate for capital costs.

Production initially will come from two developed high grade vein systems, but the 47-sq-km, largely untested property contains at least 10 other vein systems that will be further explored in ongoing programs.

Bridger estimates that these epithermal vein systems contain total undiluted reserves (measured, indicated and inferred) of 484,000 tons of 0.69 oz gold per ton, with the bulk of reserves still in the inferred category. The Cavancha stock work zone, which is viewed as a possible heap leach opportunity, is reported to contain indicated and inferred reserves of 3.5 million tons grading 0.038 oz gold per ton.

Bridger views the Pepa property as an entry-level project into Chile’s Maricunga district where international major mining companies are in the midst of a large scale mining and exploration effort. Companies active in the general area include Cominco Resources International, Anglo American, Placer Dome, Consolidated TVX, Bond International Gold, Chevron and Homestake.

Floyd told The Northern Miner that Bridger was attracted to this region because of the opportunity to discover near surface, high grade gold deposits at reasonable cost that are close to roads, towns, smelters and an experienced work force.

Because the company saw geological similarities to Bond Gold’s nearby El Indio mine, it paid a hefty price for the Pepa project; about $12.3 million to be repaid in staged payments by the end of 1992. Some $1.57 million of this has already been repaid.

Since taking on the project in June of 1988 through its 90%-owned Chilean subsidiary, Bridger has been carrying out small scale production from high grade reserves at the Vizcachas vein. The operation is currently producing about 500 oz of gold per month.

In preparation for commercial production, underground development is in progress on the Vizcachas vein and on the Purpura vein, both of which are vertical vein systems still open at depth. The mining method will be long hole open stoping. Total operating costs (mining, milling and general administration) are expected to be about $62.07 per ton, and the metallurgical recovery rate is expected to be about 75%.

Other work includes improving road access, detailed design engineering and equipment procuring. The company already has secured water rights and established clear title to the property.

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