Santa Fe gets nod to expand Lone Tree

The U.S. Bureau of Land Management has approved the proposed expansion of the Lone Tree gold mine southwest of Winnemucca, Nev.

Santa Fe Pacific Gold (GLD-N) may now extend the mine’s main pit into Section 14, which is adjacent to the operation. The expansion recently gained access to an additional 10,000 oz. gold in this quarter alone.

Production from Section 14 is expected to boost the mine’s output to 185,000-195,000 oz. in 1996 at a cash cost of US$260 per oz.

The expansion of the pit is also designed to increase mining efficiency and allow for greater access to all parts of the mine.

Oxide ore from the expanded pit will be processed using existing mill and leach pads. The go-ahead will also extend the life of the mine to at least 2006.

Santa Fe’s total production goal is 1 million oz. in 1997 and 1.25 million oz. in 1998.