Rye Patch Gold has started construction of the new south heap leach facility at its Florida Canyon mine in Pershing County, Nevada, US.

The company completed acquisition of the mine last month, and has since crushed the under-liner material for the south heap leach facility.

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Rye Patch also prepared the primary crusher from the Standard Gold mine, completed maintenance on the mining fleet, and is currently performing construction of the facility’s ponds and pad.

The fully permitted gold mine has been in continuous production since 1986 and is producing gold from its existing leach pad facilities at Florida Canyon and Standard Gold. 

"Annual production of 75,000oz gold is expected to begin in early 2017."

Mining at Florida Canyo will be from four areas within the existing pit and constitute a layback of the gold deposit. 

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Over a period of eight years, a total of 63.81 million tonnes of ore is planned to be mined. 

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Initial production from the South Heap Leach facility is expected to occur in the fourth quarter of this year, while commercial production from the new leach pad is set to be achieved by the second quarter of next year.

Rye Patch Gold president and CEO William Howald said: “We are creating a new and exciting company with anticipated initial annual production of 75,000oz gold expected to begin in early 2017. 

“With an ore body that shows great potential to expand the existing measured and indicated resource of 1.1 million ounces of gold, Florida Canyon provides Rye Patch with a solid foundation from which to grow and significant exploration upside along a trend that has been ignored for the past 30 years.”

The company has already arranged all mining and ancillary equipment required to operate the Florida Canyon mine.

Following restarting Florida Canyon, Rye Patch’s other nearby resource projects and drilling oxide targets are planned to advance.