Ridgeway gold mine looms for BP Minerals, Galactic

The Ridgeway gold mine, owned 52% by BP Minerals America and 48% by Galactic Resources will start tuneup operations by the fourth quarter of this year.

The 15,000-ton-per-day mine, located 25 miles northeast of Columbia, S.C., is expected to produce 158,000 oz gold per year for the first four years, decreasing to 135,000 oz thereafter. Operating costs are projected at $180 to $220 per oz.

The $81-million project had been held up by a challenge from a local environmental group. BP Minerals’ spokesman Frank Fisher explains that locals concerned about cyanide leaching and other tailings issues had objected to the issuance of various permits and voiced their concerns at state hearings.

“All administrative appeals and challenges to the project have been resolved. While the appeals delayed the project slightly, we are hoping to make up ground now and are in good shape for a fourth-quarter start,” Fisher says.

While the environmental protest delayed construction of the tailings system, work on other surface facilities has continued since site preparation started in July, 1987. To date, about 25% of the mill is complete. The administration offices are finished and other ancillary buildings are nearing completion.

On site workers are now concentrating on the tailings dam, erection of leach tanks and completion of the crushing and grinding facilities. Between 120 and 150 people are currently working on site.

Financing was obtained by BP Minerals through a gold bullion loan of $56 million backed by letters of credit, the terms of which are being negotiated with a consortium of financial institutions. The remaining 30% of costs will be financed through equity contributions, of which Galactic’s share will be around $12 million. To date Galactic has contributed $10.5 million to the project and is responsible for its share of the gold loan.

With proven and probable ore reserves of 56.2 million tons grading 0.032 oz gold per ton, Ridgeway is assured of at least an 11 year mine-life.

The Ridgeway orebodies outcrop on surface and are well suited to open pit mining with minimal pre- production stripping and low stripping ratios of 0.74:1.

Conventional carbon-in-leach processing technology will be used and is expected to yield an average recovery of 83%.

The Ridgeway project covers about 4,902 acres of which 1,453 acres are owned 100% by the joint venture.