Viceroy boosts production

During 1997, Viceroy Resource’s (VOY-T) share of production from its two mines totalled 158,348 oz. gold at an average cash cost of US$244 per oz.

Since achieving commercial production last May, the fully-owned Brewery Creek open-pit, heap-leach mine in the Yukon Territory produced 66,545 oz.

at a cash operating cost of US$184 per oz. An additional 5,842 oz. were produced prior to the start of commercial production, bringing total production for the year to 72,387 oz.

A total of 2.1 million tonnes of ore and 3.6 million tonnes of waste was mined during the year, and approximately 2 million tonnes of ore were delivered to the pads at an average grade of 1.87 grams gold per tonne.

Brewery Creek was put into production based on an initial proven reserve of 17.1 million tonnes grading 1.45 grams gold, at an average stripping ratio of 1.2-to-1. Viceroy is currently reviewing its ore reserve and geological resource estimates.

Brewery Creek is forecast to produce 77,500 oz. in 1998 at a cash cost of US$200 per oz.

Viceroy’s other principal asset is a 75% interest in the Castle Mountain open-pit gold mine in southern California. MK Gold (MKAU-Q) owns the remaining balance.

Production from the Castle Mountain mine totalled 122,403 oz., of which 91,803 oz. is attributed to Viceroy. A total of 3.2 million tonnes of ore and 12.7 million tonnes of waste was mined in 1997 at an average cash cost of US$288 per oz. gold. During the same period, 3.7 million tonnes of ore grading 1.31 grams were placed on the pads. Reserves at the beginning of 1998 stood at 17.9 million tonnes grading 1.24 grams gold.

Castle Mountain is primarily a heap-leach operation, though some of the higher-grade ore is processed in a 45-tonne-per-hour mill and gravity circuit. The milling portion has been temporarily suspended until sufficient high-grade ore can be stockpiled.

In a bid to lower cash costs, the mining plan for Castle Mountain has been revised using a US$300 per oz. gold price. Cash costs through to the year 2001 are projected to average US$258 per oz. Production in 1998 will fall to 82,570 oz.