Arimetco International (TSE) has acquired the Paradise Peak operation from FMC Gold (NYSE). The operation, situated near Gabbs, Nev., comes complete with a gold processing plant.
Arimetco paid FMC US$2 million plus a note for an additional US$2 million (payable in November 1996) for the subsidiary that controlled Paradise Peak. All current reclamation liabilities remain with the subsidiary, which has been renamed Arimetco-Paradise Peak. Arimetco provided a guarantee and bond of US$5.5 million related to these reclamation liabilities, which the Nevada Department of Environmental Protection accepted. The company has also committed to post another US$1 million in a letter of credit to FMC upon the restart of operation.
Arimetco will use the facility to process ore from its Sullivan copper-gold orebody, 2 miles away. All existing operating permits remain active at Paradise Peak, with the exception of its air quality permit, for which Arimetco has submitted an application for reactivation.
Modifications are necessary on several of the other permits. Existing permits are to include copper processing and another 1.5 million sq. ft. of leach pads.
The Sullivan deposit contains proven and probable reserves of 17 million tons of oxidized ore grading 0.34% copper and 0.0255 oz. of gold per ton, plus another 8.5 million tons grading 0.32% copper. The deposit will produce 22 million lb. copper and 75,000 oz. gold annually.
Arimetco plans, in addition, to carry out mining and leaching of certain residual ores situated on the Paradise Peak property. FMC Gold retains mineral rights at Paradise Peak below 550 ft., as well as a 2% net smelter return royalty on any minerals produced above 550 ft.
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