NEVADA — Rosebud gold deposit blossoms by entering commercial production

Commercial gold and silver production is under way at the Rosebud underground mine, 58 miles west of Winnemucca.

Ownership of the mine, where reserves are pegged at 1.3 million tons grading 0.39 oz. gold and 2.7 oz. silver per ton, is split equally between operator Hecla Mining (HL-N) and Santa Fe Pacific Gold. The latter recently merged with Newmont Mining (NEM-N).

Mining started in February and the operation is now producing at the designed rate of 750 tons per day. Over the next five years, gold production is expected to rise to 100,000 oz.

The orebody is accessible via two decline ramps at depths of 400 to 800 ft.

Ore is trucked 100 miles east to Santa Fe’s refurbished mill at its Twin Creeks mine site (now owned by Newmont Mining).

Santa Fe contributed US$12.5 million of Rosebud’s US$25-Million development costs and is funding the first US$1 million of the US$2 million budgeted this year for both surface and underground exploratory drilling. After the first US$1 million is spent, Hecla will fund a third of any future exploration.

The Rosebud deposit remains open to the north and at depth.