Evaluation Of Non-Cyanide Technologies For Processing Ore Of The McDonald Gold Deposit, Montana

The McDonald Gold Project and two satellite gold deposits near Lincoln, Montana, contain at least 9.9 million ounces of gold and 30 million ounces of silver. The McDonald gold deposit alone contains 7.2 million ounces of gold reserves that can be open-pit mined and processed by cyanide heap leaching at a projected cash operating cost of $190 per ounce. The deposit is predominantly oxidized with no chance of acid production, and can be mined, operated, and reclaimed with minimal permanent environmental disturbance other than the creation of an open pit filled with a fresh-water lake which would support trout. The Seven-Up Pete Joint Venture, the owner of the McDonald Gold Project, commenced permitting of an open-pit, heap-leach operation in November 1994. In 1998, Montana citizens passed an anti-cyanide, open-pit mining initiative, 1-137, which banned any new open-pit gold mine which uses cyanide processing, The Venture has conducted extensive studies, including metallurgical testing of the treatability of McDonald ores with alternative lixiviants, and has determined that all other mining and metallurgical treatment systems are vastly uneconomical in the recovery of gold and silver from the McDonald deposit. Therefore, the Venture's proposed open-pit mining and cyanide heap-leach processing is the only technology that can be applied economically to the McDonald deposit. Further, the analyses convincingly demonstrate that the proposed open-pit, cyanide heap leaching technology results in maximum resource conservation of this valuable and unique deposit and poses far less risk to human health and the environment than any of the alternative technologies.