The Keystone joint venture started open-pit mining of the BT deposit near Lynn Lake, Man., in mid-August. An estimated 25,000 tonnes of high-grade ore is now exposed.
Cazador Explorations (VSE), which is earning a half interest from Black Hawk Mining (TSE), expects milling will begin shortly at 1,200 tonnes per day. This is expected to increase gradually to 1,500 tonnes per day. Reflecting the sad state of mining in Canada, the joint venture received more than 1,400 applications for the 65 available positions at the operation. Keystone is expected to produce at about 1.24 million grams per year (40,000 oz.) at an average cost of about US$6.53 per gram (US$203 per oz.) over the life of the reserve.
Open-pit minable reserves of BT are estimated at 1.2 million tonnes grading 2.83 grams gold per tonne.
Cazador is merging with Granduc Mines (TSE) on the basis of 0.6 shares of Granduc for each share of Cazador.
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