Less than a year after Denver- based CoCa Mines (TSE) purchased Geodome Resources and its Idaho mining assets, CoCa says it is going ahead with development of the Grouse Creek gold project. Located on a 6,800-acre property in Custer Cty., Grouse Creek contains eight million tons of grade 0.059 oz. gold and 1.39 oz. silver per ton.
With a mine construction set to begin in early 1991 and completed in 1992, the operation is expected to produce 75,000 oz. gold and 350,000 oz. silver during its first three years of operation.
The development cost of the open pit project is expected to be about $46 million.
According to CoCa Mines, a supplemental environmental impact statement is being prepared by the U.S. Forest Service, Challis National Forest, as lead agency for all groups involved in the permitting process.
Pending completion of the study and the receipt of all permits, CoCa will mine from two deposits while utilizing truck haulage, crushing, grinding and cyanide agitation leaching methods. When completed, the plant is expected to process one million tons of ore annually.
“The development of the Grouse Creek mine is a major step toward meeting our annual production goal of 100,000 oz. gold,” said CoCa President Hugh Matheson.
“The project will provide a stable source of earnings for a number of years and our large land position in the area also offers several excellent exploration opportunities,” he said.
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