Before making its positive production decision, the company completed a feasibility study for a 285,000-ton-per-year mine and mill to be developed on the property. South Atlantic has a 55% interest and is operator (through its U.S. subsidiary) while Chicago-based Continental Materials holds the remainder.
Oracle Ridge is reported to have proven and probable reserves of about four million tons grading 2.33% copper and 0.67 oz silver per ton, using a cutoff grade of 1.5% copper. The project also has possible reserves of an additional 4.4 million tons grading 2.25% copper. According to South Atlantic, the 3,547-acre land package hosting the deposit has further exploration potential.
With all construction permits in hand, the company is discussing financing alternatives for the underground mining operation.
South Atlantic is required to fund the project into production, and it estimates costs will be about $6 million(US) to the start of production. The column flotation mill is expected to be the largest capital cost item.
If all goes as planned, the company hopes to begin construction in mid-January and be in production by mid-1990.
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