Vancouver-based Maymac Petroleum (VSE) has paid $US500,000 for the Crescent Valley placer gold mine within Nevada’s Battle Mountain Trend.
The property consists of 8,500 acres and a mill capable of processing 2,000 cubic yards (3,000 tons) per day. In addition to the cash payment, Maymac spent US$250,000 to refurbish the existing mill and upgrade equipment. Gold has been found in three zones, with proven and probable reserves estimated at more than 8 million cubic yards. The average grade of the material is 0.031 oz. per cubic yard (0.045 oz. per ton). The company will also explore other areas thought to have placer potential.
Production milling of stockpiled ore was to have started in mid-April. Total production costs are expected to be US$167 per oz., with a projected mine life, from proven and probable reserves, of eight years.
Aside from the gold revenue, Maymac will recieve revenue from the sale of the clean sands and gravels within the tailings. These products, used by Nevada’s Department of Mines and local heap leach mines, are considered to be in short supply.
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