Study calls for for production at Nixon Fork

An updated feasibility study gives the thumbs-up to the Nixon Fork gold project in west-central Alaska.

Consisting of a 60,000-oz.-per-year underground mine and a gravity-flotation mill, Nixon Fork is expected to enter production in the fourth quarter. Owner Consolidated Nevada Goldfields (TSE) says negotiations for financing are under way.

Consulting firm Pincock, Allen & Holt estimates a pretax net cash flow of US$16 million, following recovery of capital costs of US$13.4 million. The figures are based on a 150-ton-per-day mill, a gold price of US$385 per oz. and an operating cost of US$169 per oz.

Minable reserves are calculated at 122,549 tons grading 1.33 oz. gold per ton and 39,160 tons grading 0.96 oz., to total 200,630 oz. Pincock, Allen & Holt believes the property has excellent potential for the discovery and development of additional ore-grade mineralization.