The Keystone gold mine in northern Manitoba is in the black. Equal partners Granduc Mining (TSE) and Black Hawk Mining (TSE) report that production between June 1 and Sept. 30 led to an operating profit (before depreciation) of $608,110.
During the third quarter, 1,200 tonnes per day were produced, from which were extracted 7,396 oz. gold. The cash operating cost averaged US$327 per oz. The Lynn mill is being modified in an attempt to improve gold recovery to 91% from 86% and increase throughput by 10%. The production target is 33,000 oz. per year at a cash cost of US$295 per oz.
Permitting, under way at the proposed Farley open pit, is to be completed by spring of next year. Reserves at Farley are estimated at 1.8 million tons grading 0.11 oz. per ton, and an annual production rate of 50,000 oz. is projected. The cash operating cost is expected to be below US$225 per oz. Minable reserves of the combined deposits are sufficient for a 6-year life at the current production rate.
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