U.S. gold output in 1989 to rise to 7.4 million oz

Included in the 1989 estimate is more than one million ounces of increased production from 32 mines with start-up dates prior to 1988. Newer mines, or those entering production since the beginning of 1988, account for the remainder of the increase.

Ten companies, led by Newmont, will account for 64% of this year’s production. Newmont, with a projected 1.4 million oz this year, will become the first U.S. gold producer to surpass the million-ounce mark.

Other leading U.S. gold producers include Homestake with 711,000 oz projected for 1989, Echo Bay with 491,000 oz and Gold Fields with 381,000 oz.

The average cash operating cost for U.S. gold mines in 1988 was $216(US) per oz. The research company says three Nevada operations — Gold Fields’ Chimney Creek, FMC’s Paradise Peak and Amax’s Sleeper — are producing gold for less than $100 per oz.

Paradise Peak is an open-pit, heap-leach operation which entered production in 1986. Securities firm BBN James Capel of Toronto says the project’s estimated reserves stand at one million ounces gold and 33.9 million oz silver Output for 1989 is projected to be 199,000 oz gold and 6 million oz silver.

Also started up in 1986 was the open-pit, heap-leach Sleeper mine. BBN projects gold output there this year of 252,000 oz.

The newest of the three, Chimney Creek, went into production at the end of 1987. The heap-leach operation is expected to turn out 150,000 oz gold per year.

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