Amax gets permit for Hayden Hill after 2-year wait

Final permits for the Hayden Hill gold project northwest of Susanville, Calif., have been received by owner Amax Gold (NYSE), clearing the way for an immediate construction start.

Amax completed a positive feasibility study on the project in 1989 and had initially expected to begin construction in November of that year. Reserves at Hayden Hill are estimated at 9.4 million tons averaging 0.086 oz. gold per ton, plus 35.5 million tons of heap leach ore grading 0.017 oz. gold. The reserves are in two adjacent zones which remain open to expansion. No exploration drilling was done during the permitting process. Amax expects to bring the heap leach facilities on stream in the second quarter of 1992 with a 3,500-ton-per-day, carbon-in-pulp mill coming on line in the third quarter.

Capital cost of the heap leach and mill facility is estimated at US$75 million. At full production the operation will produce 145,000 oz. gold per year at an average cash cost of about US$250 per oz.