The official opening of the Fondaway gold mine near Fallon, Nev., adds yet another new mine to a growing roster that has made this state the leading source of gold production in the U.S.
Tenneco Minerals, a unit of Tenneco (NYSE), announced the opening of the open pit, heap leach mining operation in late January. The first phase of the Fondaway mine won’t make a big splash in Nevada’s impressive gold production statistics as it is expected to produce a modest 12,000 oz. gold per year during its 2- to 3-year mine life.
But Tenneco is continuing exploration and evaluation in the same area as part of a second-phase mine program that has the potential for a much larger reserve.
According to R.A. Hodgson, Tenneco’s vice-president for precious metals development and operations, this program will be focused on the property’s potential for underground mining of a larger and higher-grade, but refractory underground reserve.
In a separate development, Tenneco announced the acquisition of the Golden Dome property near Loyalton, Calif., from Hecla Mining. The company expects to start permitting the property immediately with the objective of developing a small, heap leach gold mining operation.
The mine is expected to produce in the range of 30,000-40,000 oz. per year f or a 3- to 4-year mine life.
Tenneco Minerals President David Delling noted that the project would contribute to the growth of Tenneco’s gold mining business unit, which began activities in 1987.
“Permitting and development have already started and additional exploration is planned which should increase the reserve base,” he stated. “Beyond Golden Dome we have a number of promising exploration projects under way which are likely to lead to other new mines in the future.”
Tenneco Minerals operates a heap leach gold mine in Idaho called Goldstrike, targeted to produce 40,000-45,000 oz. gold per year. The company’s exploration focus is on other potential heap leach mines, particularly in Nevada.
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