Chief plans startup at Trixie mine

Funds from a US$7-million private placement will enable Chief Consolidated Mining (CFCM-Q) to begin underground drilling and development at the Trixie gold mine in central Utah.

The New York-based junior received the funds from the investment partnership of Dimeling Schreiber & Park in exchange for 3.5 million new shares.

Trixie is expected to enter production by the end of the first quarter. Gold-silver concentrates will be shipped to smelters.

A portion of the funds will be used to complete construction of the mill at the nearby Burgin polymetallic property and to rehabilitate the shaft at the Holmansville gold prospect in the East Tintic district.

Dimeling Schreiber & Park have an option to buy another 5 million shares at US$2 each over the next three years.

With the new transaction, the company has increased its outstanding shares by 45% to 11.5 million. It also added five members to the board of directors, bringing the total to seven.