Granges Exploration, which owns a 56.5% interest in Hycroft Resources & Development, plans to increase its interest to 58.5% following a private placement of shares and the exercise of one-year warrants. Hycroft’s primary assets are ownership of two open pit gold projects located in Nevada. Known as the Lewis and Crofoot mines, the heap leach operations are expected to produce 75,000 oz of gold and 150,000 oz of silver in 1988.
At the Lewis mine, the project is yielding 1,700 oz of gold per month. With the completion of a tertiary crushing circuit, costing $1.2 million (US), the operation will improve to 2,100 oz of gold per month.
Drilling on the Lewis site has also substantially increased reserves from the 2.5 million tons which were outlined when Hycroft purchased the property in 1986. Current reserves stand at 9.85 million tons grading 0.03 oz gold per ton. Operating costs are estimated at $250 (US) per oz of gold.
On the adjoining Crofoot property, drilling has outlined reserves of 23.5 million tons grading 0.027 oz gold per ton. The first gold pour from the mine, which cost $21.5 million to complete, is scheduled at year-end. Yearly output is forecast at 55,000 oz gold. Operating costs are estimated at $220 per oz.
Financing for the mines was by way of a $17.36 million guaranteed gold bond carrying a 5% coupon and a $10 million (C) private placement of 7% convertible debentures.
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