The mine is expected to produce 25,000 oz gold annually at a cash cost of about $200 per oz. Total pre-production and capital costs contributed b y Degerstrom to earn a 20% interest are estimated at $4 million. Cash flow is to be distribut ed to Degerstrom until its contribution is reduced to $2.5 million; at which poi nt cash flow will be distributed according to each party’s working interest. Mineable reserves for the Mother Lode deposit are reported as 1.2 million tons a veraging 0.05 oz gold per ton. According to U.S. Precious Metals, an additional mineral resource of 450,00 tons averaging 0.06 oz gold has been outlined in the adjacent SNA deposit which is still open in all directions.
An exploration program is planned for October with the objective of increasing the known SNA mineralization. The joint venture controls more than 19,000 acres in the Beatty area covering seven separate exploration targets which are expect ed to be evaluated in the coming year.
Richard Ketchen, vice-president of U.S. Precious Metals, said the company is well financed to fund its share of exploration costs and to acquire additional ex ploration properties.
Earlier this year the company sold its Hilltop property in Nevada to a division of Placer Dome Inc. for a total of $2.6 million(US).
Wayne Spring recently replaced David Reesor as president of U.S. Precious Metals.
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