With state operating permits now in hand, Pegasus Gold (TSE) is targeting start-up and commissioning this fall of its open pit heap leach Beal Mountain mine located 16m southwest of Butte, MN.
And once on track, the project will be the company’s fifth operating mine, joining four other precious metals mines all located in the western United States. The company expects the mine will produce 38,000 oz of gold during the 1989 operating season, with operating costs expected to be below $200 (US) per oz.
Proven reserves at the Beal Mountain mine total 11.9 million tons at an average grade of 0.054 oz gold per ton. But Pegasus considers the 6,400-acre mining area to have “significant additional reserve potential.”
A pioneer in developing and utilizing the heap leach mining method, Pegasus owes much of its spectacular growth over almost a decade to its ability to identify and profitably mine what were once considered uneconomic gold deposits. The company estimates that its total 1988 production from present operations will add up to 270,000 oz of gold, 1.5 million oz of silver, 7,000 tons of lead, and 18,000 tons of zinc.
Pegasus obtained the Beal Mountain property from Silver Seal Mining Company, which retains a 30% net profits interest following payback of capital. The company said development, environmental study and land acquisition costs for the property, extending from 1984 to the present, total $8.4 million.
Engineering, construction and capital costs to place the mine into production are estimated at $14.1 million for 1988, with an additional $3.6 million to be spent as required over the life of the project for leach pad expansion.
Pegasus reports that final engineering for the project is virtually complete, and long-term delivery items are on order to meet the construction schedule. The site preparation and mining contractor have been mobilized to begin work immediately.
The company said it worked closely with state and federal agencies to meet Montana’s stringent environmental standards.
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