Placer Dome to operate Australian gold mine

Placer Dome Inc. has committed itself to bringing another gold mine into production, the company said recently.

The Big Bell gold property in Western Australia will be developed by Placer Pacific Ltd., Placer Dome’s 75.8%-owned Australian subsidiary, in a joint venture with Australian Consolidated Minerals.

Located 335 miles northeast of Perth, the property hosts estimated reserves of 22 million tons grading 0.095 oz gold per ton. “This will be mined by open pit methods during the first six years of production and by underground methods over the following seven years.”

With a formal commitment to begin construction, Placer Pacific earns a 50% interest in the project from Consolidated Minerals.

With a plant capable of processing 2.9 million tons of oxidized ore per year, Placer Dome says the mine will produce at a rate of 160,000 oz gold annually during the first six years and 120,000 oz annually during the next seven. Estimated capital costs of development are $133.4 million, with an additional $64.4 million needed to develop the underground mine after four years.

When it goes into production, Big Bell will be Placer Dome’s second Australian gold producer.

The Kidston mine in Queenston produced 239,293 oz gold in 1986.