Rosebud blossoms ahead of schedule

Commercial production at the Rosebud gold-silver mine in northwestern Nevada has begun, two months ahead of schedule and US$3 million under budget.

Joint owners Hecla Mining (HL-N) and Santa Fe Pacific Gold (GLD-N) report that ore is being hauled at the rate of 750 tons per day and that, to date, 40,000 tons have been stockpiled. Assays from the first 25,000 tons average 0.46 oz. gold and 2.4 oz. of silver per ton.

Hecla operates the mine, which is situated 50 miles west of Winnemucca. Ore is trucked nearly 100 miles to Santa Fe’s mill at the Twin Creeks mine site.

Cash costs are projected at US$180 per oz.

Reserves stand at 1.3 million tons grading 0.39 oz. gold and 2.7 oz. silver per ton, equivalent to 500,000 oz. gold and 3.4 million oz. silver. The mineralized structure lies 400 to 800 ft. below surface.

Production, which will be shared equally by both companies, is expected to total 100,000 oz. gold per year over the next five years.