Drilling at the Soledad Mountain project near Mojave, Calif., has boosted proven and probable reserves to 27.8 million tons grading 0.025 oz. gold and 0.42 oz. silver per ton.
Golden Queen Mining (TSE) revised the estimate while carrying out a feasibility study for a 4-million-ton-per-year, open-pit, heap-leach operation.
In addition, the overall stripping ratio for the mine has dropped to 2.3-to-1 from the previous estimate of 3-to-1.
The study projects yearly output at 100,000 oz. gold-equivalent at a cash cost of under US$220 per oz. It is estimated the mine will produce for seven years.
A deeper probable resource has the potential of extending the mine life, according to the company.
Metallurgical tests project recoveries of 80% for gold and 75% for silver, based on an 11-month leach cycle and a 10-mesh crush.
The capital cost of the proposed mine is estimated at US$45 million.
Startup is projected for the second quarter of 1998, following a 27-month period of permitting and construction.
Several consulting firms are bidding to carry out a final bankable feasibility.
Golden Queen owns 100% of the Soledad Mountain property, which is situated 5 miles south of Mojave in Southern California’s Kern Cty.
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