Skyline to rerun Johnny Mountain

A limited production run is planned at the Johnny Mountain gold mine in northwestern British Columbia.

International Skyline Gold (TSE) expects to mine and mill about 20,000 tons of material grading 0.51 oz. gold per ton for a projected output of about 10,000 oz. gold, 120,000 lb. copper and 15,000 oz. silver.

Cash operating costs, including copper and silver credits, are estimated at US$233 per oz. Milling is to start Sept. 9 and continue for about two months. The mine’s re-opening was financed through a private placement of $1.25 million in 8% debentures convertible at $1.65 per share.

Skyline President Clifford Grandison said the mine and mill are in excellent shape and rehabilitation costs are not expected to exceed $300,000. In conjunction with the re-opening, the company is trying to expand reserves to at least 100,000 tons. It is also spending $200,000 on expansion and confirmatory drilling.

Proven and probable reserves are estimated at 66,000 tons grading 0.57 oz. gold.

Skyline also plans to spend about $400,000 on its other holdings in the area, including the Bronson Creek copper-gold porphyry property. Several targets have been identified there and drilling is planned in a series of fences. International Skyline (formerly Skyline Gold) has about 14.9 million shares outstanding, $2 million in working capital, and no debt except the new convertible debenture.