Permits issued for Briggs gold deposit

Colorado-based Canyon Resources (NASDAQ) has received all major permits for construction of the Briggs gold deposit in southeastern California.

However, the company has received two appeals concerning its reclamation plan from a local environmental group and the Timbisha Shoshone Indian tribe. The county board of supervisors were reportedly considering these appeals at presstime.

Capital costs are estimated at US$28 million, most of which will be spent on equipment and construction, with the remainder reserved for prestripping and waste removal.

Canyon has received approval from the New York branch of Banque of Paribas for a US$30-million gold-loan, though final approval is still pending. The company also received a US$4-million line of credit for the reclamation bond from the Banque of Paribas.

Construction will begin once financing is completed. Groundbreaking is expected in September, and production should begin with a first gold pour by the second quarter of 1996.

The Briggs mine is expected to produce 75,000 oz. gold per year over a 7-year mine life, which is expected to help Canyon achieve its overall production target of 150,000 to 200,000 oz. per year.

Canyon reported a second quarter loss of US$1.4 million (or 5 cents per share), compared with a loss of US$683,800 (or 3 cents per share) for the same period last year.