Sonora bets on turnaround at Jamestown gold project

Sonora Gold is a 32.5%-owned affiliate of ABM Gold which also holds a 15% net operating profits interest in the Jamestown mine. Both companies are based in Vancouver.

Production at Jamestown, which is 70%-owned and operated by Sonora, increased to 97,000 oz gold in 1988 at an average cost of $292(US) per oz compared to 37,800 oz at a cost of $400 per oz in 1987.

Mine production is expected to stabilize at around 110,000 oz this year at a cost of $250 per oz as higher grade ore is recovered.

According to mine general manager Martin Quick, progress during the first two months of 1989 suggest that production for the year could be higher than planned (106,000 oz).

While gold recoveries are still hovering in the 77.8% range (compared to a targeted 80.9%), grades during January and February averaged 0.07 oz gold per ton,” Quick told The Northern Miner.

Due to the fact that fine gold recovered from the Harvard pit is difficult to liberate from the surrounding iron, recoveries are still a little disappointing, he said.

Situated 70 miles east of Sacramento, the mine consists of six deposits with proven reserves of 23.6 million tons grading 0.062 oz gold per ton. Ore is being shipped from the mine site to a 6,300-ton- per-day carbon-in-pulp leaching facility at nearby Buckskin, Nev.

Last July, Northgate Exploration (TSE) of Toronto acquired an equity stake in Sonora and two other companies which directly and indirectly provide control. Northgate’s intention was to improve the performance of the Jamestown mine.

Since the orebodies have not yet been fully delineated, the possibility exists for an expanded operation which may include underground mining, Sonora says.

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