Iron Colt partners transport first ore

The first ore from the Iron Colt gold mine project in Rossland, B.C., is on its way to Echo Bay Mine’s Kettle River mill near Republic, Wash.

Iron Colt is a 50-50 joint venture between International Silver Ridge Resources and Pacific Vangold Mines. The two Vancouver-listed companies recently negotiated a custom milling contract with Echo Bay. Iron Colt material is being shipped by truck in 30-ton loads, and the first batch of 800 tons, grading an estimated 1 oz. gold per ton, should be completed within a week.

The first shipment was sourced from a 130-ft.-long exploration drift and four 4-by-4 ft., 50-ft.-high box holes that tested the upper extent of the Iron Colt vein.

The joint venture has completed one crosscut to test the full width of the vein, returning an average of 0.67 oz. from muck samples over a width of 30 ft.

Additional development will have to be completed in order to estimate a reserve. Dal Brynelsen, president of Pacific Vangold, says the joint venture plans to start mining at an initial rate of 60 tons per day, with the objective of ramping up to 100 tons per day.

To that end, the companies plan to initiate underground drilling to define further the oreshoot on the Iron Colt vein.

Brynelsen says operating costs are expected to be about $210 per oz. based on a grade of 0.75 oz., including a mining cost of $60 per oz. ($45 per ton) and a trucking cost of $27 per oz. ($20 per ton).

Meanwhile, Pacific Vangold is working to define and expand a 100,000-ton resource grading 0.33 oz. at its nearby Evening Star gold project. The company has completed a 500-ft.-long drift to the area and is now mining a series of box holes.