Production milestone for McLaughlin mine

New York-listed Homestake Mining plans to celebrate the pouring of the two-millionth ounce of gold from the McLaughlin mine at Lower Lake, Calif.

The milestone was set Oct. 15, and will be commemorated next May at a formal event involving mine employees, executives, suppliers and public officials.

The open-pit operation poured its first yellow metal in March, 1985, and its one-millionth ounce five years later.

“Recent results have been excellent at McLaughlin,” says Ronald Parker, general manager of the mine. “Gold production in 1992 was a record 291,094 oz. and cash operating costs were US$204 per oz.”

The mine also performed well in the first half of 1993, turning out 153,500 oz. at US$189 per oz. Moreover, production costs have never been lower. The deposit is one of the world’s best-preserved examples of a hot-springs-type epithermal gold deposit. Permitted and operated as an environmental model, the mine has won recognition for its efforts to preserve and enhance wildlife populations.

It is also a technical success for Homestake, the first company in the world to install a unique pressure-oxidation circuit which uses autoclaves to recover gold. A similar circuit will be used at the Eskay Creek project in northwestern British Columbia, in which Homestake holds an 54% indirect interest.

With major operations in the U.S., Canada and Australia, Homestake expects to produce 1.8 million oz. gold this year. Cash operating costs have averaged US$228 per oz. in the first six months of 1993.