GEXA, U.S. Precious Metals have Mother Lode up to speed

The first two bullion pours have been completed at the recently commissioned Mother Lode heap leach gold mine near Beatty, Nev.

Opened two months ago, the open pit mine is held by a joint venture of U.S. Precious Metals (TSE), GEXA Gold (USOTC) and mining contractor, N.A. Degerstrom.

Total of the two pours, representing gold recovered since mid- November, was 899 oz. Another pour is scheduled this month as production from the heap leach pads increases.

“Startup has proceeded with only minor delays, and the mine has achieved its designed capacity of 2,500 tons of ore per day,” said Wayne Spring, president of U.S Precious Metals.

“It appears recovery rates will be above designed levels of 70% and we anticipate that positive cash flow will be achieved by the end of the first quarter.”

Currently, interests are held 40/40/20 by U.S. Precious Metals, GEXA and Degerstrom, respectively.

With minable oxide reserves estimated at 1.2 million tons averaging 0.05 oz. gold per ton, the mine is slated to produce 25,000 oz. of gold annually at a cash cost of $200 per oz.

The joint venture is also conducting additional exploration on its 19,000-acres of property holdings in the area.