Gold production is expected to total 90,000 oz at Sonora Gold Corp.’s Jamestown operation in California this year. The mine, which is operating at 6,000 tons per day, is producing 7,500 oz of gold per month, the company says.
Operating costs of $300 per oz of gold, remain above those estimated by a feasibility study. Sonora attributes the difference to lower than anticipated grades and gold recoveries. Also, higher costs are being encountered in complying with strict environmental regulations.
As higher grading ore from the deeper portions of the Harvard open pit are processed, costs are expected to decline to $225 per oz. At the current rate of mill feed, the company expects to produce an average of 110,000 oz of gold during the next five years, reaching a high of 140,000 oz in 1991. The Jamestown mine has an open pit life of 14 years.
Sonora, which holds a 70% interest in the mine, tried to purchase the remaining 30% held by Pathfinder Corp., a French company. However, the deal collapsed following the market crash last year. The company plans to restart negotiations again this year with the intention of purchasing the interest.
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