Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Veris Gold has just announced that the 8 millionth ounce of gold was produced from the Jerritt Canyon processing plant in Nevada on March 21, this year. The long-lived gold mining operations at Jerritt Canyon make it part of only a few leading gold production properties in Nevada. In the early operating years from 1983 to 2006, the processing plant consistently produced over 200,000 oz/y of gold. Recent upgrades to the processing plant by Veris Gold and the startup of two new underground mines (Starvation Canyon and Saval 4) will enable the company to target production of at least 175,000 oz of gold in 2013.
Production will come from SSX-Steer and Smith, the two new underground mines, and from third party ores based on recently finalised toll milling agreements.
The first ounce of gold was produced on July 4, 1981 when Freeport-McMoRan and FMC Corp owned and operated the Bell open pit mine. Mining at Jerritt Canyon has continued since 1981 with underground mines providing most of the ores since 2000 under several other company operators. AngloGold operated the mine from 1998 to 2003.
Veris says it “is proud of achieving the 8 million ounce production milestone and will continue to provide employment opportunities to people in the region. The company recently returned the mine to profitability in the third quarter of 2012 and plans to continue the successful mining operations into the foreseeable future.”
Mining at the new Starvation Canyon mine commenced in early April and is targeting 600 t/d of ore production.
“Using the December 31, 2011 NI 43-101 Technical Report, with identified Measured and Indicated resources totalling 2.3 Moz at an average grade of 6.48 g/t Au, reserves of some 1.1 Moz at an average grade of 6.00 g/t, an Inferred resource of 0.75 Moz at an average grade of 6.24 g/t, an existing four-plus year life of mine plan, a new tailings storage facility, a revitalised environmental awareness and dedication, and a top-notch mine staff, Jerritt Canyon is poised for future success. [The] mine will continue to significantly contribute to Nevada’s pre-eminent gold mining stature in the US and the world.”
Veris Gold also holds a portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the former producing Ketza River mine.
