Metall Mining Corp. (TSE) plans to increase its operations in Australia following the commencement of gold production at the company’s Callion mine near Kalgoorlie. Callion, which began operations last summer, is a 90,000-ton-per- year mine capable of producing 25,000 oz of gold per year. Reserves of 550,000 tons grading 0.29 oz are sufficient for a 7-year life.
The company, which is controlled by Metallgesellschaft AG , a West German mining company, is one of the few operators in the Kalgoorlie camp which has underground narrow vein mining experience. Traditionally, gold mines in the camp have employed open pit mining methods.
The company hopes that its narrow-vein mining abilities will generate joint venture opportunities in the area. At Callion, underground reserves stand at 340,000 tons grading 0.36 oz.
Work on the nearby Burbanks project has outlined reserves of 135,000 tons. A preliminary feasibility study suggests that production could begin by the first quarter of 1989. Processing of ore would take place at the Callion mill at Broad Arrows.
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