Contrary to what appeared in the Feb. 15 issue of The Northern Miner, permitting and economic studies are under way for the main Pipeline gold deposit in Nevada.
This advanced project is held by the Cortez joint venture owned 60% by Placer Dome (TSE) and 40% by Kennecott. Reserves are reported as 35.3 million tons grading 0.12 oz. gold per ton.
An open-pit mine and a 4,600-ton-per-day mill are being proposed for this project, which will also include heap-leach processing of lower-grade reserves. Capital costs are estimated at US$250 million, and a feasibility study is expected to be completed shortly.
The South Pipeline deposit, one half-mile away, is at a less-advanced stage. A substantial program of expansion and infill drilling is planned for this year by the Cortez joint venture.
South Pipeline is estimated to host a preliminary reserve of about 10 million tons grading 0.12 oz. gold, at a cutoff grade of 0.05 oz. Royal Gold (NASDAQ) holds a 20% net profits interest royalty from production on the South Pipeline claims, while ECM Inc. has a 5% net value royalty.
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