First gold poured at Cortez mine

Mining at the Pipeline open-pit deposit has resulted in the first gold pour at the Cortez mine in Nevada’s Crescent Valley.

The operation is a 60-40 joint venture between Placer Dome (PDG-T) and Kennecott, respectively.

The mill was completed three months ahead of schedule and US$70 million under budget, and the carbon-in-leach gold recovery plant has a planned capacity of 7,200 tonnes per day.

“To bring on a mine so far ahead of schedule and at a significant budget underrun creates even greater value from an already robust project,” says Placer Dome President John Willson.

The joint venture expects to produce more than 5.9 million oz. gold from Cortez over its 12-year life.

Life-of-mine cash production costs are estimated at US$135 per oz. — US$17 less than previously forecast. The reduction is chiefly due to increased production and revised mining and dewatering costs.

Commercial production is expected to commence at the end of March.

Total construction and development costs for the Pipeline and South Pipeline deposits are pegged at US$250 million.

The new mill is one of two being used. A 1,800-tonne-per-day facility, inaugurated in 1968, will continue to process ore from both the Crescent and the Pipeline pits.

Placer Dome’s share of production from Cortez and Pipeline is projected to exceed 200,000 oz. gold in 1997, at a cash cost below US$200. The property has total proven and probable reserves of 49.6 million tonnes grading 2.7 grams gold, with a stripping ratio of 4.7-to-1.

In 1996, Cortez produced 96,469 oz. — 45% higher than the previous year. The increase was due to the milling of higher-grade ore from the Crescent pit, increased heap-leach production and improved recoveries.

Placer Dome expects the commissioning of the new Pipeline pit and mill to lead to an approximate increase of 42% in Placer’s U.S. gold production in 1997.