Toronto-based Tyranex Gold (TXGI-C) intends to raise $10 million so that it can buy the Mineral Hill gold mine in Montana from TVX Gold (TVX-T).
The deposit contains a drill-indicated minable reserve of about 1.3 million tonnes grading 0.29 oz. gold per ton, for roughly 385,265 contained ounces. The gold is considered recoverable at a cash operating cost of US$237 per oz.
Tyranex plans annual production of 56,650 oz. gold over a mine life of slightly more than seven years. The company plans to raise 70% of the necessary financing through the Montana State Board of Investment. Details of this proposed financing have yet to be disclosed.
Mineral Hill opened in 1989 as an underground mine accessible by four adits.
It has been on care and maintenance since a drop in the grade of material mined forced its closure in 1996.
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