Gold production at a nominal rate of 100,000 oz. per year is expected to begin in the third quarter of 1991 at the Lone Tree mine owned 100% by Santa Fe Pacific Gold, a unit of Santa Fe Pacific (NYSE). In 1990, Santa Fe Pacific produced about 48,000 oz. gold from its newly commissioned Rabbit Creek mine and its 30% share of the Marigold mine. An expansion program at Rabbit Creek and the new Lone Tree mine are expected to boost the company’s gold production to more than 300,000 oz. by 1992.
The Rabbit Creek, Marigold and Lone Tree properties are all near Winnemucca, Nev.
The company reports that its overall reserves increased to 4.7 million oz. from 3.8 million oz. as a result of the completion of mine planning for the initial phase of operations at the Lone Tree project.
The 100% owned property contains 5.4 million tons of oxide mill reserves grading 0.16 oz. gold per ton (at a 0.05 oz. cutoff grade), and 5.7 million tons of heap leach reserves grading 0.025 oz. gold at a 0.01 oz. cutoff grade.
The company said engineering work on the sulphide section of the deposit is ongoing, and it expects a major portion of the 1.2 million-oz. sulphide resource will be added to reserves as that work is completed.
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