Toronto-based Bitech (ASE) has signed a letter of intent to purchase a 50% interest in Red Rock Mining, a private American company, for $800,000. Red Rock owns or has interests in 11,016 acres of heap leachable gold mining properties near Goldfield, Nev.
The partners plan to begin production this summer on ground hosting an average grade of 0.063 oz. gold per ton. Bitech believes it can produce 24,500 oz. gold in the first year at an “all in” cash cost of US$297. Thereafter, the overall grade is expected to drop to 0.055 oz. As a result, production will drop to 24,000 oz. per year at a cash cost of US$305.
The site has leach pads and a gold recovery plant permitted for production. Deposits include the Mohawk mine with preliminary reserves of 872,000 tons grading 0.061 oz., the Jumbo deposit with 150,000 tons grading 0.1 oz., and the Geochem property with 550,000 tons grading 0.051 oz. Four miles to the north, the McMahon Ridge property hosts 550,000 tons grading 0.051 oz.
Bitech says there is excellent potential to expand reserves and will explore the ground during development and operation.
About 4.2 million oz. gold, 1.5 million oz. silver and 7.7 million lb. copper were produced in the Goldfield area during 1903-60.
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