Morning Star returns to production

Nevada Manhattan Mining (NVMH-O) intends to place the Morning Star gold mine back in production after it buys the operation from owner Vanderbilt Gold (VAGO-O).

The companies are still negotiating a price for the mine, which is situated in California’s San Bernadino Cty. Nevada Manhattan wants to acquire a full interest in the mine, but Vanderbilt will hold a 15% net profits interest. Nevada Manhattan has begun its due diligence review, which should be completed in December.

The company plans to return the mine to production with a few modifications to the existing plant. Construction on the vat leach system needs to be completed before production of higher-grade material can begin. “The carbon circuits, lab and gold room are all installed,” a Nevada Manhattan spokesman says. “Construction is about 80% complete.”

Production at 25,000 oz. per year could begin as soon as the first quarter of 1998. Gold recovery is expected to be 80% or greater.

Mining at the open-pit project will initially focus on high-grade material contained in the northern side of the pit. Mining will begin before the company evaluates the feasibility of building heap-leach pads.

Under Vanderbilt, the mine produced 25,000 oz. gold and 38,000 oz. silver before being shut down in July 1990. At that time, reserves stood at 6.5 million tons grading 0.048 oz. gold per ton, equivalent to 300,000 contained ounces.

Nevada Manhattan plans to conduct exploration on the 800-acre property to expand those reserves, as well as to identify heap-leach targets.