The expansion of Amax Gold’s (TSE) Sleeper Mine near Winnemucca, Nev., is expected to add about 40,000 oz gold to the Colorado company’s annual gold production by 1989, the company said recently.
Amax says the expansion is due to a 97% increase in high grade millable ore which was defined by 400,000 ft of delineation drilling. “The recovery rate for the high grade ore is currently 96% with a cash production cost of $93(US) per oz,” said Chairman Allen Born.
The Sleeper mine is expected to produce 250,000 oz gold this year from heap leach operations at an average cost of $105 per oz.
Amax said it will spend $17 million on overburden stripping, mill and ancillary facility expansion and expansion of the heap leach operation.
Expected to be completed late this year, the plan includes additional mining equipment and relocation of utility equipment.
“Our better understanding of the geology of the Sleeper deposit has enabled us to make this change in the mine plan,” said Born.
Be the first to comment on "Amax to expand Sleeper gold mine"