Canyon gets nod at Briggs

An amended operating permit will allow Canyon Resources (CAU-X) to begin mining at North Briggs and Goldtooth, two satellite deposits to the Briggs gold mine in southeastern California.

The approval follows environmental assessments by the U.S. Bureau of Land Management and the Inyo County Planning Commission.

The grade at North Briggs is said to be nearly double what is being mined currently. Canyon has not drilled the satellite deposit since 1997 and intends to expand the reserve beginning this year. The most recent reserve estimate is 2.9 million tons grading 0.053 oz. gold per ton, equivalent to 152,170 oz.

Production from North Briggs could begin early in 2001.

The Goldtooth deposit, immediately south of the main Briggs deposit, contains about 93,000 oz. gold in 2.6 million tons grading 0.036 oz.

In all, the company controls 17,000 acres surrounding Briggs, including the Cecil R. and Jackson zones, 4 miles north of the mine. Earlier drilling at Cecil R. outlined a resource of 84,000 oz. gold in 2.2 million tons grading 0.038 oz.

Briggs produced a record 86,669 oz. gold and 24,044 oz. silver in 1999 — 8% more than in the previous year, despite a 10% drop in the average grade to 0.027 oz. per ton. Cash operating costs were not available.

In three years of operation, Briggs has produced 237,171 oz. gold and 66,051 oz. silver. Production in 2000 is expected to total 86,000 oz. at a cash cost of US$250 per oz.