Rye Patch: Mine plan promising
A preliminary economic study of a proposed gold mine in Pershing County found promising results, says the company that’s working to bring it to reality.
The Lincoln Hill gold and silver project about 30 miles east of Lovelock appears to have the potential to produce an average of 33,000 ounces of gold and 753,000 ounces of silver a year over a five-year mine life, said executives of Rye Patch Gold Corp. of Vancouver.
Those production figures are based on gold prices of $1,350 an ounce and silver prices of $22 an ounce.
Rye Patch Gold is studying development of the property as an open-pit mine that uses heap-leach processing. Total production costs are estimated at $759 per ounce of gold, and startup costs are estimated at $30.2 million.
The economic study was completed by Metal Mining Consultants Inc. of Littleton, Colo.
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