Idaho Gold, the operating company set up by Amir Mines (63%), Normine Resources (22%) and Glamis Gold (15%) is proceeding with development of its Buffalo Gulch heap leach mine near Elk City, Idaho.
As soon as permitting is completed, construction will begin, Amir President Ian Johnson told The Northern Miner. Permitting is expected to take most of this year with construction slated to begin early 1989. Capital costs will be around $3.5 million(US), Johnson says, adding that the company is discussing a number of financing options.
He estimates construction will take about two months. A seasonal operation would process 900,000 tons annually to produce 20,000 oz of gold. Consideration is being given to a year-round operation to increase gold output.
At current reserves (five million tons grading 0.03 oz gold per ton) a 6-year mine life is envisaged. However, there is potential for additional tonnage in several areas along the 17-mile Idaho gold belt, Johnson explains.
Amir and Normine, on behalf of Idaho Gold, have recently negotiated an option to acquire a 100% interest in the Erickson Reef property located immediately north of Buffalo Gulch.
Drill-indicated reserves total 2.5 million tons grading 0.06 oz at a strip ratio of 2:1 waste to ore.
A number of options are being considered to treat Erickson Reef ore at Buffalo Gulch and metallurgical testing will be carried out in 1988.
To earn the interest, Amir and Normine must pay $50,000(US) and 100,000 shares by June 1, plus another 100,000 shares on Jan 1, 1989. A 4% net smelter royalty or minimum annual royalties of $40,000 in the first year, $60,000 in the second and $100,000 in the third and beyond must also be paid, whichever is greater.
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