An independent engineering study indicates a 3-year mine life at the Mindora gold-silver project of Eureka Resources (VSE) and Hawthorne Gold (VSE). Eureka President Jack O’Neill says the companies are considering alternatives for funding the $2-million project to production.
Anticipated output is expected to be 5,100 oz gold and 215,000 oz silver per annum using conventional milling and heap leaching. The feasibility study proposes a 500-ton-per-day mining operation, processing 100 tons of silver-rich ore through a conventional mill and the rest by heap leach. The production cost for gold is estimated at $250 per oz and $4.75 for silver.
A pre-development program is under way to locate water on site, refine metallurgy and reserves, and to secure required permitting. Construction could begin this fall and production in early 1989. The property is located near Hawthorne, Nev.
Eureka can earn a 50% interest in the project for an expenditure of $1.2 million(US) of which $150,000 has been spent already. After that expenditure has been made costs are shared on a pro rata basis.
Be the first to comment on "Eureka, Hawthorne study suggests mine possible"