New Jersey Mining Company restarts gold production at Golden Chest Mine in Idaho
New Jersey Mining Company (NJMC) has resumed gold production at its Golden Chest Mine and New Jersey Mill, north of Idaho, US.
The company started open-pit operations in August and resumed mill activities in late-September as scheduled.
NJMC expects to resume underground mining by December and forecasts gold production of 8,000oz to 10,000oz in 2017.
With gold price at $1,200 per ounce, the company will generate $9.6m in revenue and $2.1m of profit by producing 8,000oz of gold.
NJMC president John Swallow said: “We continue to view the Golden Chest as one of the most advanced and easily expandable gold projects in the western United States. Resuming production at the Golden Chest and ore processing at the New Jersey Mill demonstrates the dedication of our team and our commitment to the project.
“We have a highly motivated team whose interests are aligned with our shareholders, and we believe our strategy has us well-positioned to take advantage of rising gold prices.”
The open-pit is located at Idaho Vein outcrop, 200m above the recently built mine portal. It contains an estimated 13,000t of mineralised material at an average grade of 4.99 grams per tonne (gpt) gold, or around 2,100oz of recoverable gold.
Pit excavation has opened three veins, comprising a hanging wall vein, the Idaho vein and the newly revealed Stevens Vein in the footwall. Most of the higher grade ore is associated with the Stevens vein.
Open-pit mining operations have advanced from the 1,116 level down to the 1,087 bench. Around 6,000t of ore has already been mined, which is stockpiled at the mine and at the nearby New Jersey Mill.
New Jersey Mill has processed approximately 1,000t of ore in the last few weeks. It has implemented various processing techniques as the partially oxidised ore procured from the open-pit exhibits different characteristics from ore mined underground and milled in 2015.
Latest production assays reveal gold recovery of approximately 80% from feed grades ranging from 3.5gpt to 4.9gpt of gold, yielding concentrate grades of 1,200gpt of gold.
NJMC also stated that underground dewatering activities are continuing as scheduled. Necessary infrastructure and equipment with trained personnel are in place so that NJMC can start underground mining after completion of dewatering.