Based in Thompson Falls, Mont., USAC expects to generate $2.5 million(US) in sales this year from its antimony division which produces antimony oxide and sodium antimonate for use in the glass industry. USAC also produced 3,500 oz gold at its General Custer mine near Yankee Fort, Idaho last year.
Partner WestGold is being financed by South Africa-controlled Minorco SA which recently failed in its bid to secure control of Britain’s Consolidated Gold Fields.
The joint venture has already outlined a shallow deposit in a high silica zone containing probable reserves of 600,000 tons of grade 0.106 oz gold per ton. “We are hoping to find the faulted extension of the ore zone,” said USAC President John Lawrence.
According to Lawrence, the deposit could be extracted via open pit mining methods because of its low waste-to-ore stripping ratio and simple metallurgy.
If USAC receives a permit to mine the deposit, Lawrence says the partners will attempt to produce 10,000 oz annually at a cost of $150-200(US) per oz starting late next year.
In a bid to boost its gold production to around 200,000 by 1992, WestGold has agreed to spend $2 million on exploration and development work at another Idaho property — the Estes Mountain — in return for a 51% stake in the project.
Under the agreement, USAC can retain a 49% stake in the property after WestGold has earned its interest by funding future costs on a pro-rata basis. The agreement also allows the Montana company to retain a 25% project interest without incurring any expenses.
USAC says a small 50-ton-per- day operation has commenced at the Specimen gold property near Lowman, Idaho, where a zone containing 22,413 tons of grade 0.38 oz gold and 0.133 oz silver has been outlined.
About 300 tons of material (average grade 0.30 oz) have been trucked to the Preachers Cove mill in Idaho for processing.
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