In exchange for 12.9 million shares and four million warrants, Amax Gold (NYSE) recently completed the purchase of a 100% interest in the Fort Knox property from former owners, Fairbanks Gold and Gilmore Gold.
The Fort Knox property, 15 miles northeast of Fairbanks, Alaska, contains an estimated proven and probable reserve of 122.5 million tons grading 0.026 oz. gold per ton.
Amax plans to begin work on a final feasibility study and permitting process immediately.
Preliminary plans call for a 36,000-ton-per-day milling operation which would produce in the order of 300,000-350,000 oz. gold per year at a cash cost of US$200-215 per oz.
Capital cost of the project is expected to be about US$220 million.
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