Development of the Silver Butte polymetallic mine in Douglas Cty., Ore., is reported to be on schedule for startup by the end of the year. Owned by Formosa Resources (VSE), the Silver Butte project is estimated to contain minable reserves of 420,000 tons grading 3.57% copper, 2.98% zinc, 1.46 oz. silver and 0.045 oz. gold per ton.
Essential mill equipment is in place with the mill building 65% complete and the tailings pond 90% complete. Underground development is proceeding ahead of schedule, and Formosa reports sufficient working faces have been established to ensure a planned initial production rate of 200 tons per day.
President Kuang Lu said the company has about $1.2 million in the bank which should be sufficient to bring the project to production.
He did say, however, that the company is negotiating to raise a further $3 million which would allow it to bring the mine up to the production rate of 400 tons per day ahead of schedule.
Current plans call for the mining rate to be double in mid-1991 using cash-flow from the mine. Lu estimated the expansion cost at about US$1 million including working capital. He said the balance of the funds raised would be used for other company projects.
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