Late last year, Alta Gold (NASDAQ) started producing gold at its newest Nevada operation, the Kinsley mine. Situated in Elko Cty.’s Kinsley Mountains, the open-pit mine contains proven reserves of 3.5 million tons grading 0.045 oz. per ton.
The US$3.5-million operation is expected to produce 44,100 oz. this year at an estimated production cost of US$220 per oz.
Heap leaching is anticipated to recover 80% of the gold, according to metallurgical tests. Alta notes, however, that the quantity of gold in the first shipment (513 oz.) “far exceeds” its projected recovery rate. The company had forecast a 20% recovery rate during the first 20 days of leaching. The actual rate with the first shipment was 27% after 10 days of leaching.
The Kinsley deposits, described as “Carlin-type,” are hosted in Cambrian limestone and calcareous siltstone. Gold mineralization occurs in structurally and stratigraphically controlled orebodies along a northwest-trending structure cutting across the Kinsley Mountains. The Kinsley mine consists of four economic deposits: Main, Upper, Ridge, and West Ridge. Each will be mined separately as open pits, beginning with the Main deposit.
Alta has delineated two partially defined resources, the Access and Lower Main deposits, and plans further exploration drilling of the West Ridge Extension.
Alta expects to continue gold production of about 1,000 oz. per month through 1995 at its Easy Junior mine, west of Ely, Nev.
The company is awaiting approval of an environmental impact statement for its Copper Flat project near Truth or Consequences, N.M. More drilling is planned at the Olinghouse gold project, near Reno, Nev.
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