Dakota Mining (TSE) and Hecla Mining (NYSE) intend to combine their sulphide mineralization interests in the Stibnite-Yellow Pine area of central Idaho.
Dakota and Hecla will share assets from the area equally, as well as explore for additional sulphide resources on the property. Hecla owns 340 acres in the Yellow Pine area, which contains a sulphide resource of 20 million tons grading 0.09 oz. gold per ton (or 1.8 million oz. gold).
Dakota’s Stibnite mine, which contains an unmined sulphide resource of 300,000 oz. gold, produces 40,000 oz. gold per year from oxide ores. The company will continue to own and mine all of the oxide resource in the area, and will spend US$500,000 this year exploring for additional resources. The operation covers 8,028 acres.
Meantime, Hecla announced the temporary closure of the Grouse Creek gold mine, also in Idaho, in order to increase the size of the tailings impoundment, which has reached its capacity.
Following the impoundment’s expansion, which is expected to last two months, Hecla will resume mining at Grouse Creek.
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