The recent acquisition of a subsidiary of Tenneco will give Equinox Resources (TSE) another operating mine.
The acquisition, priced at about US$2.4 million, includes a 100% interest in the Goldstrike mine in southwestern Utah, the Fondaway Canyon property in west-central Nevada, and the Golden Dome property in east-central California. The Goldstrike heap leach mine is currently producing about 38,000 oz. gold per year at a cash cost of about US$230 per oz.
The transaction is expected to close at the end of October at US$3.4 million, less about US$1 million in net Goldstrike mining profits since May, 1992. Equinox arranged financing for the purchase through a debenture to two lenders for a period of one year.
Reserves at the Goldstrike property are expected to last about two years and the company sees good potential for the discovery of additional reserves on the 47-square-mile property.
Fondaway Canyon is a former heap leach producer (1989-90) and contains over 400,000 oz. of underground refractory gold reserves.
The Golden Dome property contains preliminary reserves totalling 1.5 million tons grading 0.06 oz. gold and is open in two directions. The property also includes clear title to a 720-acre ranch.
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