The Premier gold mine, which is operated by Westmin Resources (TSE), entered production in May. Full production will be achieved by August. The mill is processing low grading stockpiled ore assaying 0.035 oz gold and 1.1 oz silver per ton at a rate of 2,000 tonnes per day. Higher grading material from the Premier open pit is scheduled to begin entering the mill in Au gust. Pioneer expects that its share of gold and silver production from the Premier mine this year will total 15,600 oz and 136,000 oz respectively.
At the Stibnite mine, the seasonal operation began in May and is running at design capacity. Leach pads will be loaded with 880,000 tons of ore grading 0.037 oz gold during the operating season. Pioneer’s share of 1989 output is estimated at 16,000 oz of gold and 8,000 oz of silver.
Another 8,000 oz of gold came from the Puffy Lake mine in Manitoba. Puffy Lake was shutdown earlier this year following severe dilution problems. Strathcona Minerals, a mining consulting company which is reviewing the operation, is expected to submit a report to Pioneer by early August.
Approximately 85% of Pioneer’s 1989 gold production has been sold forward at a price of $454(US) per oz. Another 75% of the company’s 1990 output has been sold at $460 per oz.
In Canada, Pioneer plans to spend $2 million on exploration. Funding for the program is coming from CMP Partnerships, a flow- through fund. Also, a plan of operation has been completed for the company’s Bonito gold project in New Mexico.
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