Goldenbell going aheaed with Calif. gold mine

While financing is still waiting in the wings, Goldenbell Resources of Vancouver says it has made the decision to go into production with its Pine Tree gold project in Mariposa Cty., Calif.

The company says the mine will start as an open pit operation at a milling rate of 8,000 tons per day, to produce about 130,000 oz of gold per year.

The Wright Engineers’ feasibility study for the project on which the go-ahead decision was based, will be submitted to San Francisco- based Pathfinder Gold Corp., which has an option to acquire a 30% interest in the project.

Pathfinder’s decision is due by the end of next January, Goldenbell says.

Meanwhile, according to M. G. Berretta, president of Goldenbell, the company is negotiating with international banking and financial institutions for the funds needed to get the Pine Tree property into production.

“These are informal discussions,” Mr Berretta tells The Northern Miner, “but we are optimistic about the outcome. This project is a winner, assuming the gold price holds at about its present level.” Capital cost for the project is estimated at $51.8 million(US), he says.

Diluted mineable open pit reserves are set at 17.4 million tons at a grade of 0.058 oz gold per ton, with geologically inferred underground reserves adding another 15 million tons at a grade of 0.06 oz.

Mr Berretta says operating cost per oz of gold produced is expected to be i the $229 per oz range.

Present plans are for a construction start-up on the project by mid-1987, with production to get under way about a year later.