Hecla, Great Lakes pour first gold

The year ended on a bright note for Hecla Mining (NYSE) and Great Lakes Minerals (TSE) as the partners announced their first gold pour at the Grouse Creek mine in central Idaho.

Mining and stockpiling of the underground high-grade ore and Sunbeam open-pit ore have been under way since mid-1994, and the mill started up in late October. Ore is crushed and processed through a conventional gold recovery mill using the Merrill-Crowe process. Dore bars are poured on site. The mill is scheduled to treat an average of 6,000 tons per day. While 1994 production was nominal (figures were unavailable), output for 1995 is expected to reach 130,000 oz. gold and 1 million oz. silver in 1995. Great Lakes owns 20% of the project, and its share of 1995 production will be about 26,000 oz. gold and 200,000 oz. silver. If the company opts to acquire an additional 10% stake, its share of production will increase to 39,000 oz. gold and 300,000 oz. silver.

“With our second gold mine coming on-stream next year and the consistent and substantial cash flow anticipated from Grouse Creek, 1995 will be a threshold year for Great Lakes’ shareholders,” says President Nicholas Tintor. Grouse Creek is estimated to last eight years, based on probable reserves totaling 839,000 oz. gold and 16 million oz.

silver.

Great Lakes hopes to bring its second gold mine into production in the third quarter. The capital cost of the wholly owned Lluvia de Oro heap-leach deposit, situated in Mexico’s Sonora state, is estimated to fall below US$5 million. Lluvia de Oro is expected to produce 30,000 oz. gold annually at a cash cost of US$210 per oz.

In another development, Great Lakes has entered a joint-venture with Brookline Minerals (VSE) to bring the former’s 543-S copper project into production by mid-year. Situated in northern Michigan, the deposit is expected to produce more than 25 million lb. copper annually.