An independent analysis of reserves has been prepared by a U.S. consulting firm for Brohm Resources’ (TSE) Gilt Edge project in South Dakota. Proven and probable oxide reserves now stand at 6.2 million tons grading 0.046 oz gold and sulphide reserves total 28.8 million tons averaging 0.044 oz gold.
The estimate, which was prepared by Minproc of Denver, was part of a study that included mining and processing plans, capital and operating costs.
The oxide reserve is estimated to have a strip ratio of 1.59:1 and production costs are expected to be $18.24 million(US) including working capital. Brohm anticipates that mining will begin in the third quarter with full production of 1.4 million tons per year commencing in 1989. Mine life for oxide material is only four years and this phase of the project should yield about 45,000 oz gold per annum.
Approximately $6 million will be spent this year to increase sulphide reserves which could lead to a 4-8-million-ton-per-year conventional milling operation. Recent metallurgical testing has indicated an 80% recovery rate using gravity and leaching circuits, the company notes.
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