Mill City Gold Inc and joint venture partner Tyranex Gold Inc are well under way with their project to reprocess old mine tailings at the Tyranite mine, near Gowganda, Ont. The Tyranite mine produced 223,810 tons of ore with a recovered grade of 0.147 oz of gold per ton between 1939 and 1942. Mine tailings from this operation are estimated to contain 0.034 oz. Feasibility studies have indicated that gold particles are evenly distributed throughout the relatively coarse tailings and that 65% may be recovered by gravity separation utilizing six full-size slime tables. Proposed throughput is 7,540 tons per day. On-site buildings to house the gravity separation circuit have been erected and the gravity tables are being installed. Preproduction costs for plant, tailings disposal and administration are estimated to be $315,000. At estimated monthly revenues of approximately $220,000 and operating costs of approximately $93,000 the project should pay back the investment in approximately 2.25 months. By January, 1988, it is projected that 2,403 oz gold may have been produced, with the balance of 2,017 oz scheduled for production in 1988.
The project may therefore generate gross revenues of $2,431,000 at a gold price of $550(C).