FirstMiss oxide circuit produces 5,400 oz gold

Proven and probable reserves at Getchell are estimated to be 1.27 million oz, sufficient for 8.5 years of production. The average grade of the reserves is 0.155 oz gold per ton. Recent exploration activity has revealed additional inferred geologic reserves which could increase mine life by a year if they stand up, he said.

The Getchell property covers 46 square miles of an active gold mining region near Winnemucca just east of the Osgood Mountain range. Initial operations will involve about 1,000 acres of land surrounding old mine pits. The mill will combine a traditional cyanide leach circuit with pressure oxidation for sulphide ores. The milling operation is expected to produce 174,000 oz gold per year during the first three years of operation. In years four through eight, production is estimated to average 122,000 oz each year, assuming the grade declines as current reserves are depleted.

Capital costs for the new mine are estimated at $79.1 million(US) excluding financing cost. A 150,000 oz gold loan provides $71.3 million and the public offering provides $23 million for project cost and working capital. Financing arrangements also include a 5-year hedging program which establishes a minimum price of $400 per oz for 202,600 oz of gold and a maximum price of $450 for 70,600 oz. The gold loan will be repaid from production over five years.

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