Gold production at Grandview Resources’ Carson Hill mine in California has increased substantially with the commissioning of the No 2 leach pad. August production was 3,144 oz which compares to 2,332 oz the previous month. Since the mine started production, 13,212 oz of gold have been produced with a value of $8 million.
The new leach pad has a total capacity of 3.3 million tons, enough for two years’ total mine production. At the end of August there were 389,162 tons of crushed ore on the pad under leach. The capacity of the No 1 pad has been expanded to 1.2 million tons and there were 537,163 tons under leach at the end of August.
The recovery plant has been re-piped to handle higher volumes of pregnant solution. Plant capacity is 1,200 gallons per minute and September gold production is now expected to increase to 4,000 oz. Monthly gold output should climb continuously over the coming months as ore is added to the heaps.
There is currently about 20,000 oz of gold in the system which includes ore heaps and the plant’s recovery circuit. Before production started, the company negotiated a bank loan to cover completion costs and working capital for initial production. This loan has been totally paid off and the company is now debt free.
Grandview says that “ore reserves used in the production feasibility study are being firmed up by an exploration program now under way.” Ten holes in a 12,000-ft drill program have been completed and all of these cut significant mineralization, the company reports.
Grandview has a 100% working interest in the mine subject to a 3% net smelter return royalty. The 89-claim property is located in the western foothills of the Sierra Nevada mountains 65 miles south of Sacramento.
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