Red Rock expansion nearing completion at Goldfield project

Expansion of the Goldfield project in Nevada is proceeding on schedule, with completion expected by June.

Heap-leach operations are being upgraded to process up to 80,000 tons of ore per month. It is estimated the operation will produce more than 40,000 oz. gold per year at a cost of $230 per oz.

Situated midway between Reno and Las Vegas in an old mining area where claims date back to the turn of the century, the property is owned by Red Rock Mining (NASDAQ). Historically, most of the gold was extracted from steeply dipping, silicified structures that often carried bonanza grade values. A recent re-examination of the area has revealed lower-grade, near-surface oxide deposits, as well as deeper-seated sulphide bodies.

Minable gold reserves are projected at 3.5 million tons grading 0.071 oz. per ton. Assuming a cutoff of 0.02 oz., in situ reserves are estimated at 10.2 million tons grading 0.065 oz..

The company is also working to delineate additional reserves. At present, Red Rock is 61%-owned by American Resource (NASDAQ) which, subject to approval by Red Rock shareholders, can earn an additional 13% interest in the company.