Breathing new life into the former producing Bagdad Chase gold mine, Bentley Resources is working towards starting up a 350-ton-per-day operation in October this year.
The mine, located in the Mojave Desert of southern California, will cost around $4.5 million to bring on stream, Walter Ruck, chairman, reports.
A feasibility has been completed and all federal and state permits are in place. Site clearing is under way and mill construction is scheduled to start in March. Using an agitated vat cyanide leach, gold recovery is expected to be 95% for annual production of around 20,000 oz. Production costs are estimated at $152(US).
Ore will come from three open pits, the Bagdad, Middle Mine and Roosevelt. Stripping of the first pit is on schedule.
The company is currently spending $140,000 on a 16,000-ft drilling program designed to increase open pit reserves beyond the 950,000 tons grading 0.147 oz gold per ton.
Ruck reports encouraging assays from drilling in a previously untested area of the property. The first five holes, drilled southwest of the Roosevelt deposit, averaged 17.5 ft in thickness with a grade of 0.3 oz. The best hole gave 25 ft of 0.662 oz. Another 17.5-ft intersection averaged 0.15 oz. Drilling is continuing and additional results are expected shortly.
Bentley has a 50% interest in the 315-claim Bagdad Chase property, acquired from U.S. Oil and Minerals Corp. In addition, a 100% interest is held in the adjoining 102- claim Bagdad West property. The property was acquired in 1987 from Echo Bay Mines for $300,000, plus sliding scale royalties of 3-5% net smelter returns.
The project will be financed either through an equity or a convertible preferred debenture. Financing is expected to be in place by the end of March. At year-end, Bentley’s working capital was $237,000.
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