U.S. REPORT USMX gives production nod to Yankee project in Nevada

After completing an internal analysis, USMX (NASDAQ) has approved development of its Yankee gold project in the Alligator Ridge gold trend of Nevada.

The Yankee project is now reported to contain proven reserves of 1.2 million tons grading 0.047 oz. gold per ton, of which 1.07 million tons at 0.048 oz. gold are considered minable. In addition, preliminary reserves total 1.2 million tons grading 0.057 oz. gold.

Because the project has already been permitted, USMX expects that construction of crushing, heap leaching and carbon adsorption facilities could begin as early as this fall at a capital cost of US$3.5 million.

Assuming construction begins this fall, USMX is predicting production of about 21,000 oz. gold in 1992 at the anticipated recovery rate of 75%. The total amount of gold contained within the proven and preliminary resource on the Yankee project is estimated at 129,000 oz.

USMX has other Alligator Ridge properties which together are estimated to host 421,000 oz. gold contained in the resource. This estimate includes only drill identified, near-surface oxidized gold mineralization that has the potential to be mined by open pit methods and recovered by heap leaching.

Significant deep and/or carbonaceous gold mineralization occurring within the land package is not included in the current total gold resource.

Exploration and development drilling is continuing on a number of discoveries, and will begin on many untested targets later this year. USMX expects that this ongoing drilling will continue to expand the overall Alligator Ridge gold resource.