Silverado Mines plans to start a small gold mining operation this month at its Grant property, near Fairbanks, Alaska. A 300-ton-per- day mill is on site which will process material from three zones amenable to open-pit mining, the company says.
Although the project appears to have limited reserves, the company feels drilling has outlined at least one year’s supply. Based on a milling rate of 250 tons per day and a grade of 0.13 oz gold per ton, the mine could produce 5,200 oz of gold during its first six months of life. Production costs are estimated at $30 per ton.
Gold is associated with enriched zones in the O’Dea vein system. The mine area comprises a small section of the over-all 14-sq-mile Ester Dome property, which is owned by Silverado. The company plans to follow up exploration on several other gold showings on the property which could become potential feed sources for the Grant mill.
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