State permits for the Fort Knox gold project in central Alaska are in place and Amax Gold (NYSE) expects federal approval from the Corps of Engineers in the near future.
The capital cost of Fort Knox is estimated at US$220-US$240 million and company directors will consider their financing options at the next board meeting.
Based on a 36,000-ton-per-day mill, the project, 15 miles north of Fairbanks, is expected to produce 300,000-350,000 oz. gold per year at US$220-US$240 per oz.
Proven and probable reserves are estimated at 174 million tons grading 0.024 oz. gold per ton.
The company will proceed with design work this year and construction is expected to take two summer seasons, starting in 1995. Startup will likely be in the fourth quarter of 1996.
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