Conventional milling has always been part of Minven’s plan at Gilt Edge and following a major drill program last year it appears to have sufficient reserves to justify that proposed milling rate.
During 1988, Minven completed 156,656 ft of drilling using reverse circulation and core drilling equipment. The holes, which were put down on 150 ft centres, were designed to “complement and expand the area of previous drilling,” he said.
A new pit design based on evaluations of the drilling results has been prepared by Mintec Inc. of Tucson, Ariz. According to Minven, reserves now total some 54.2 million tons grading 0.041 oz gold (proven and probable), approximately six million tons of which are heap leachable. In addition, there are 6.3 million tons of possible reserves grading 0.049 oz. Altogether they constitute over 2.5 million contained ounces, among the largest undeveloped reserves in the United States.
The ore reserve calculation is based on a $400 gold price, a cut off grade of 0.022 oz, and a 2.6:1 strip ratio. The deposit is open on three sides, Minven noted.
An internal cost estimate prepared by Minven indicates a capital cost of $100 million(US) for a sixmillion-ton-per-year facility. After receiving all the necessary permits, the facility would take about 18 months to complete and be capable of producing 200,000 oz per year when in full production, the company pointed out.
Besides owning the Gilt Edge mine, Minven owns 50.7% of Blackdome Mining (TSE), has a 50% joint venture interest in the Stibnite mine in Idaho, a 33.3% joint venture interest in the Golden Reward Mine (six miles from Gilt Edge), and a 25% joint venture interest in the Cactus mine near Lancaster, Calif.
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