Beaver Resources says a recent trenching program has extended the ore zone at its producing Kramer Hills heap leach property in California. The zone has been expanded to the south and east with a subsequent increase in reserves, notes James M. Blair, president. He also says that Noranda Exploration is planning further drilling on an adjacent property held under option from Beaver.
Commercial production began earlier this year at Kramer Hills which is located 130 miles northeast of Los Angeles on the edge of the Mojave Desert. It was initiated before reserves were fully defined and they now total some 1.2 million tons grading 0.038 oz gold per ton.
Results from test production last year yielded 0.047 oz gold per ton on two leach pads, he claims. The company’s objective is to increase production to approximately 50,000 tons per month and costs are expected to be less than $3(US) per ton. This production rate would yield about 1,200-1,500 oz gold per month, he states.
The company will be drilling two new gold properties in the coming year. The first is located in the Val d’Or area of Quebec and the second (the Prairie Diggings) near John Day, Ore. Besides drilling, test production is also planned on the latter this summer, he says.
Conceding that income from wells in Oklahoma and Montana “decreased substantially last year” because of lower oil prices, Mr Blair predicts that income will double in the coming year.
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