More NewsAXcess News: Junior Gold Mining Company Makes Rare Move Into Production
11/23/2009 11:24:20 AM - Market Wire
NEW YORK, NY, Nov 23, 2009 (MARKETWIRE via COMTEX News Network) --
Encore Renaissance Resources Corp. (TSX-V: EZ) (PINKSHEETS: ERRCF) says it will commence underground mining at its Bonaparte Gold Mine after receiving the go ahead by Canadian mine regulators. The gold mine, which is to ship ore to Kinross' Gold's Kettle River Mill in Washington, is one of the few junior gold mining companies to make the move from exploration to production.
Encore Renaissance's President Michael Mulberry, was quoted in an early morning release as saying, "This is a substantial milestone. There are few junior companies that become actual producers, and we are proud to say that we will be joining that group in the coming weeks."
EZ's Bonaparte Gold Mine shipped 500 tons of ore to Kinross Gold Corp.'s (KGC) Kettle River Mill in September. KGC acquired Kettle River through the acquisition of Echo Bay Mines Ltd in June 2002. The acquisition moved KGC to the level of Senior Gold Producer. KGC has since continued expanding through acquisition, having recently announced a bid on Teryl Resources 20% stake of its joint venture Gil property which adjoins Kinross' Fort Knox Mine in Alaska. Encore Renaissance said indications from its sample tonnage sent to Kinross' mill came back at 1.4 ounces per ton on a 97.5% rate of recovery, which amounts to a near-bonanza grade of gold.
Bonaparte Gold Mine operator, BCT Mining Corp's President, Roger McClay, told AXcess News in an interview that production costs would run about $425 per-ton and that the Company would be gearing up to produce as much as 120 ton-per-day shortly.
McClay explained that the veins are one to two meters wide with "consistent grades" that McClay says are "hard to find." The mine operator explained that further tests indicate grades of 26.5 grams per ton within the "Crow Vein," which some 200 holes had been drilled since its initial discovery in 1994. This summer, BCT Mining trenched even more veins on the property with grades consistent with the Crow vein, though McClay would not give details.
When asked about further exploration at the Bonaparte Gold Mine, McClay said that if production levels could be brought up to 120 ton per day or higher, Encore would be one of the few junior gold mining companies that wouldn't need to raise further capital if gold prices remain at current levels. "We're just going to go do it," McClay stated.
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