Goldenbell study on Pine Tree bet

An environmental impact study has been filed for Goldenbell Resources’ Pine Tree gold property in California. The study is required before receipt of a mining permit. Present scheduling indicates construction will begin in late 1987 and production in late 1988. A study by Wright Engineers indicates the mine will produce about 130,000 oz gold per year during the first 6.5 years at a direct cost of $229(US) per oz. A bulk underground mining method is possible after the open pit has been mined out. Capital cost for the operation is $51.8 million.

In late April, the company completed a private placement with abm Gold for $25 million. To cover the balance of the capital cost, the company says it has been negotiating for a “bullion-related facility” of $30 million. “These negotiations are proceeding smoothly and it is expected that this facility will be in place in the near future.”