1992 — A LOOK BACK — New U.S. mining projects

Several projects in the U.S. came on stream last year.

Marking its third producing property, USMX (NASDAQ) brought its Yankee mine into production by pouring gold on June 24.

The Yankee operation, near Ely, Nev., is expected to produce about 15,000 oz. of gold this year and 21,000 oz. per year during the subsequent three years. Total reserves at the Yankee operation are estimated to be about 2 million tons at 0.045 oz. per ton.

Amax Gold (NYSE) cranked up its Hayden Hill mine, north of Susanville, Calif., pouring the first gold on June 15.

The open-pit mine utilizes heap leaching as well as a 3,500 ton-per-day carbon-in-pulp mill and Amax expects the operation to be running at full capacity by the first quarter of 1993.

Production is projected at about 145,000 oz. per year with cash costs in the US$250-per-oz. range.

Milling reserves at Hayden stand at about 9.4 million tons grading 0.086 oz. gold while heap-leach reserves total 35.5 million tons grading 0.017 oz. gold. Although permitting problems delayed construction of the Black Pine mine in southern Idaho by about six months, owner Pegasus Gold (TSE) experienced a generally trouble-free startup this year.

Built at a cost of about US$20 million, the run-of-mine heap-leach operation is expected to produce about 50,000 oz. of gold in 1992 at a cash cost of about US$200 per oz.

Stated reserves at the Black Pine property at the beginning of the year were 15.7 million tons grading 0.028 oz. gold, giving the project an estimated 4-year life. Pegasus sees excellent potential in increasing the mine life through additions to ore reserves.

Viceroy Resources (TSE) finally poured its first gold in February at the Castle Mountain project in San Bernardino Cty., Calif.

The pour marked the culmination of a permitting effort dating back to September, 1987, the company’s original planned construction start. Viceroy, along with 25% joint venture partner MK Gold, expects to produce about 100,000 oz. of gold per year from the 8,000 ton-per-day open-pit heap-leach operation. Cash costs are projected at about $220 per oz. Proven and probable reserves at startup were estimated to be about 24.6 million tons grading 0.047 oz. gold, plus a possible reserve of about 13.5 million tons grading 0.046 oz. gold.