Amselco and Galactic to develop Ridgeway

Approval has been given to develop the Ridgeway gold project in South Carolina which will be a joint venture between Amselco Minerals and Vancouver-based Galactic Resources.

Ridgeway Mining, a wholly- owned subsidiary of Amselco will be operator and hold a 52% interest with Galactic retaining 48% through a subsidiary. The property is scheduled for production in July 1988.

Coincidentally with the production decision, Galactic announced a high level executive departure which apparently is not related to the new mine development. Edward Roper, who was rumored to have been leaving last year (N.M., Dec. 22/86), has resigned as an officer and director of Galactic and its subsidiaries. The departure is thought to be related to operating difficulties at Galactic’s Summitville gold mine in Colorado which last year resulted in a sharp production shortfall.

Galactic President Robert Friedland confirms the $80-million Ridgeway project will be financed from “partners’ equity and bank loans.” The companies are proceeding jointly with a consortium of banks for project financing and he says these arrangements are well advanced. Galactic has put its interest in the Ridgeway property into a wholly-owned subsidiary, Triangulum Resources.

The property is located 25 miles northeast of Columbia and reserves are estimated to be 56.2 million tons grading 0.032 oz gold in two deposits approximately one mile apart. The low grade deposits will be mined and milled conventionally using carbon-in-pulp technology. In terms of primary gold producers, the operation no doubt will be one of the lowest grade conventional mining operations in the world.

Mining will begin in the lower grade South pit followed by simultaneous mining from both pits. Based on a 1:1 strip ratio, the mining rate will be 30,000 tons per day. The plant will handle 15,000 tons and the companies project annual gold production at 133,000 oz over the 11-year mine life. Key permits have been issued and site preparation is under way, says Galactic.