Having completed a positive due diligence review, Claimstaker Resources (CLN-V) is proceeding with plans to acquire the Zenda gold mine project, 65 km east of Bakersfield in Kern Cty., California.
The project is currently owned by Equinox Resources, a wholly owned unit of Hecla Mining (HL-N).
Zenda contains a previously identified reserve of 1.6 million tons grading 0.041 oz. gold per ton, which includes 920,000 tons of 0.057 oz. Claimstaker says the higher-grade material would be mined in the early stages of the pit.
The silver content at Zenda is estimated at 0.4 oz. per ton.
Most of the permits required to begin production are in hand, and the operation is expected to be in full production by early 1998.
Zenda is targeted to produce 2,000 oz. gold per month using heap-leach processing methods at an operating cost of less than US$210 per oz. The waste-to-ore ratio is 0.61-to-1. The company notes that the potential exists to expand known reserves along strike and downdip.
Meanwhile, in British Columbia, Claimstaker has commissioned a feasibility study to examine the economics of returning the Blackdome gold mine to production.
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