First gold production from Grandview’s Carson Hill mine

The first gold pour has taken place at Grandview Resources’ Carson Hill project, 120 miles east of San Francisco, Calif. The dore bar contained 254 oz gold, says the company. Grandview forecasts 1987 production at 70,000 oz which would place it among the top 15 U.S. gold producers. Mine life is estimated to be a minimum of nine years based on ore reserves of 16.1 million tons averaging 0.046 oz gold. But a mineralized zone along strike from the main orebody could provide an additional five million tons of ore which could extend mine life by several years, the company claims.

Capital costs for the project were approximately $10.5 million and the payback period is expected to be 1.7 years at a gold price of $350(US). The grade for the first seven years of operations is expected to be 0.057 oz which is quite high by industry standards. Grandview recently netted $3.5 million when two European banking firms exercised 420,000 warrants at $8.25 each.