In a bid to become a dominant low-cost producer of alluvial almandine garnet products, Bitterroot Resources (VSE) will buy a 700-ton-per-day modular heavy mineral recovery plant in Arizona.
The 4-year-old plant is being sold for US$660,000, with the purchase scheduled to be completed in February, 1995. As a result, Bitterroot will be able to double its planned yearly production to 30,000 tons. Michael Carr, a director, tells The Northern Miner that the company’s main priority is to put the Williams garnet project into production by the middle of 1995. Situated in Mohave Cty., Ariz., the 3,100-acre property has undergone drilling of more than 600 holes, as well as 900 ft. of trenching. The company is proceeding with permitting as metallurgical tests are being completed. The property is being leased to Bitterroot, with the vendor retaining a 6% operating profit royalty. A 100% interest can be obtained for a purchase price of US$1.2 million.
Bitterroot’s recently acquired Santa Fe property, 30 miles from the Williams project, adjoins land that it already controls, resulting in a total package of 3,200 acres. Drilling and trenching point to a resource exceeding 50 million tons of garnet-bearing material. The rights to the property’s placer minerals are being subleased from Santa Fe Pacific Gold (NYSE) for an initial 3-year period, with an additional 15-year option.
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