With the payment of US$1.75 million plus one million common shares of Amax Gold (NYSE), Amax recently exercised its option to earn a 62.5% interest in the Haile property from owner Piedmont Mining (NASDAQ).
The Haile property, near Kershaw, S.C., was last reported to contain preliminary reserves totaling 8.5 million tons grading 0.08 oz. gold per ton at a strip ratio of about 4.3-to-1.
Piedmont noted that consultant American Mine Services is now updating a preliminary economic evaluation of the project based on additional drilling, metallurgical and engineering data.
Amax is studying the project’s potential to support a 4-5,000 ton-per-day milling operation capable of producing roughly 100,000 oz. of gold per year at a cost in the US$200-per-oz. range.
The two companies are now reviewing plans and budgets for additional exploration and condemnation drilling, as well as further engineering and environmental studies for the remainder of 1992.
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