Ridgeway revives Galactic

The 15,000-ton-per-day open-pit mine and mill is operated by partner and 52%-owner, British Petroleum Minerals, with Galactic holding a 48% interest.

During its first commercial quarter ended March 31, 1989, the mine produced 43,216 oz, of which 34,887 oz were shipped at an average cash cost of $163(US) per oz.

This cost includes general and administrative expenses and is considerably lower than the originally forecast budget cost of $216 per oz. The amount of gold produced for the period is 42% higher than projected.

In March, after start-up related modifications were completed, the mine produced 18,045 oz and shipped 14,683 oz at a cash cost of $134 per oz. If sustained, these operating costs would place Ridgeway among the lowest cost producers in North America.

The joint venture based their 1989 budget year on expectations that the mine would produce 160,000 oz of gold at a cash cost of about $174 per oz, including general and administrative expenses.

Galactic now calls the budget “conservative” based on the first quarter operational experience of reduced reagent consumptions, increased metallurgical recoveries and ore throughput and reduced mining and milling costs. Recoveries for the period averaged 91.5%, up 5% from the projected rate.

During the quarter, 2,684,000 tons were mined (a 17% increase over budget) and 1,366,300 tons were milled (a 40% increase) which allowed mill throughput to average 15,181 tons per day, a 35% increase over projections.

At the start of production, reserves at Ridgeway were reported as 56.2 million tons grading an average of 0.032 oz gold per ton, sufficient for a 10-12 year mine life at 15,000 tons per day.

Continued success at the Ridgeway mine will help Galactic return to profitability. The company’s latest financial results reflect a $39.9 million write-down of assets at its wholly-owned Summitville mine in Colorado, which brought about a net loss of $45.2 million in 1988.

Along with equal partner, Cornucopia Resources (TSE), Galactic is planning to bring on stream a new heap-leach mine in Nevada sometime next year. The open-pit deposit has mineable oxide reserves reported at 18.4 million tons at an average gold grade of 0.035 oz.

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