Inco gives green light to Montana gold mine

Toronto-based Inco Gold and Homestake Mining have elected to go ahead with a new gold project at Jardine, Mont.

One of the principal properties in the Inco Gold portfolio, the project is a 50%-50% joint venture involving a U.S. affiliate of Inco Gold — American Copper and Nickel Co. and Homestake. American Copper Nickel will be the project operator.

With more than one million tons grading 0.30 oz gold per ton, the operation can support a 450-ton-per day mill, said Inco spokesman David Graham.

The mine and mill are being designed for the production and treatment of 150,000 tons of ore annually, yielding an annual average of 42,000 oz.

Capital cost of the project is estimated at $32.4 million and production is scheduled to begin in July.

With its Golden Pond project at Casa Berardi in production this summer, ambitious Inco Gold is forecasting production of 115,000 oz by 1991 rising to over 400,000 oz by the late 1990s.