Bridger plans gold production in Chile

Although dwarfed by a number of bulk tonnage gold projects nearby (among them Placer Dome’s La Coipa project and Cominco Resources International’s Marte and Lobo gold projects), Bridger is hoping the low cost, high grade gold mining operation will finance ongoing acquisition costs and further exploration programs by turning out about 30,000 oz of gold per year. The company has an option to acquire the property for a total consideration of over $12 million(US) and is facing hefty yearly staged payments to 1992. Part of the costs of bringing the property into commercial production will be borne by a subsidiary of Cluff Resources PLC. of London, which recently elected to exercise its right to acquire an interest in the mine. Upon completion of Cluff’s obligations, it will have a 50% equity interest while Bridger will retain 40%, with the remainder held privately.

The partners expect that capital costs for the new mill using gravity concentration and flotation methods will be about $3.2 million(US), with project financing to be raised in Chile so as to allow Bridger’s equity contribution to be met from working capital. Ultimately, the company plans to add a carbon-in- leach plant in order to increase recoveries above the 75% currently expected from the combined gravity and flotation methods.

Operating costs are estimated at $67(US) per ton or $132(US) per oz based on an average ore grade of 0.7 oz gold per ton. At projected rates of production, and indicated and inferred reserves in the Vizcachas vein structure of 240,000 tons, the minimum mine life is estimated at four years. The property is reported to have at least nine similar veins of “promising grade,” but as yet undefined vertical extent.

A drill program is under way to increase reserves on the Vizcachas vein, as well as on structures identified elsewhere on the 47-sq-mi property. George Cavey, director, said the project is road-accessed and has flowing water, both important factors in Chile.

The partners will also investigate the possibility of a future heap leaching opportunity on the basis of 2,124,000 tons of indicated and inferred reserves grading 0.05 oz gold per ton in the Cavancha sector of the property.

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