By 1992, the gold unit of Santa Fe Pacific (NYSE) expects to be producing more than 300,000 oz. gold annually from various mining operations in Nevada. About 200,000 oz. of this amount is targeted to come from the company’s new Rabbit Creek mine near Winnemucca, Nev., where the first gold bar was poured in mid-August of this year.
It took 18 months of construction and about US$77 million to bring the first phase of the project on stream. The mill, which began operations in mid-July, is now averaging 1,600 tons per day with a gold recovery of over 90%. The company said both these results are better than anticipated.
The mine is expected to produce about 25,000 oz. gold this year, with a production rate at year-end of about 100,000 oz. gold annually. By 1992, this will be increased to 200,000 oz. gold after completion of a US$60-million mine expansion program which began in August of this year.
Santa Fe owns 100% of the Rabbit Creek mine. It also has a 30% interest in the Marigold open pit mine operated by Rayrock Yellowknife Resources (TSE) near Winnemucca. It also owns 100% of the Lone Tree exploration project adjoining the Marigold mine project, as well various other projects covering millions of acres in the western U.S.
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