Having survived as a junior for more than a decade, Rea Gold (TSE) is establishing itself as an operating company with the ability to construct and manage mines.
Headed by James Hogan and a new management team, Rea recently completed pre-production work on the first phase of open-pit mining and leaching at the Comstock gold project in Nevada. The project is a joint venture with BMR Gold (TSE), with Rea as operator. The first phase was completed on time and within budget.
Production started at 3,500 tons per day and will increase to 6,000 tons per day after a protective base of fine ore has been placed over the leach-pad liner. Gold production will begin in early October and is expected to average 2,300 oz. per month.
Permitting activities for building a second plant are under way. Rea Gold will contribute the first US$1.25 million in working capital for this second phase (as it did for the first). Each partner contributes equally to working capital over this amount, thereby maintaining their 50% interests. Rea Gold was previously known for its interest in the Samatosum silver mine near Barriere, B.C. The former producer was operated by joint-venture partner Minnova, now owned by Metall Mining.
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