Joint venture partners USMX (NASDAQ) and Pegasus Gold (TSE) marked the official start of production at the Casino mine near Ely, Nev., by pouring a dore bar containing about 850 oz. gold. The partners brought the modest- sized heap leach operation into production on schedule, and at the budgeted cost of about US$1.5 million. Open pit mining and plant construction began in May of this year, followed by the start of leaching in September, and the first gold pour in early October.
Casino is expected to produce 8,000 oz. this year, and 21,000 oz. gold in 1991. Current minable reserves total 624,000 tons with an average grade of 0.059 oz. gold per ton.
USMX and Pegasus are at the feasibility stage at the Winrock property, some four miles from Casino. This project is also part of the joint venture between the two companies, with USMX holding a 51% interest.
The Winrock deposit is expected to add operating life to the Casino heap leach operation. The feasibility study should be completed in November, and USMX projects that Winrock will come on-line late next year.
In addition to its 49% interest in the Casino-Winrock joint venture properties, Pegasus currently holds an approximate 35% interest in USMX.
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