Hycroft Resources updates reserves at Crofoot-Lewis

Production at the Crofoot-Lewis open pit gold mine in Nevada increased 10% between 1993 and 1994.

Owner Hycroft Resources & Development attributes the rise (94,868 oz. compared with 86,516 oz.) to trial leaching of uncrushed, run-of-mine ore. (Previous to 1994, production was limited by the capacity of the crushing plant.) The company plans to continue the practice this year. The cash operating cost for the latter half of 1994 aver-aged US$277, compared with US$335 for the first half.

Exploration and definition drilling in 1994 resulted in a significant increase in proven and probable reserves. These currently stand at 66.5 million tons grading 0.019 oz. gold per ton at a stripping ratio of 2.3-to-1, compared with 56.7 million tons grading 0.018 oz. at 1.9-to-1 for the previous year.

Granges (TSE) holds a 50.5% interest in Hycroft and recently proposed an amalgamation of the two companies. The merger, which is subject to shareholder and regulatory approval, offers Hycroft shareholders 0.8 of a common share in the amalgamated company in exchange for one Hycroft common share held. Shareholders of Granges would receive one common share of the amalgamated company for each Granges common share.

Shareholders’ meetings for both companies are scheduled for the end of March.