Montana Tunnels – start-up efficiencies improves, expansion considered

Introduction Pegasus Gold's Montana Tunnels mine is a large surface gold, silver, lead, and zinc mine located 37 km (23 miles) south of Helena in southwestern Montana. Milling operations commenced in late March 1987. The concentrator achieved full production in May that year after undergo¬ing several modifications and improvements. Production for 1988 is projected to be 2.48 t ,80,000 oz) of gold, 34.2 t (1.1 million oz) of silver, along with 8.5 kt (9400 st) of lead, and 22.6 kt (25,000 st) of zinc from lead and zinc concentrates. Mill throughput currently averages 11.7 kt/d (12,900 stpd), compared to the origi¬nally designed capacity of 11.3 kt/d (12,500 stpd). Cash production costs, net of bypro¬duct revenues for the third quarter 1988, were below $3.20/g ($100 per oz). The introduction of ore to the concen¬trator marked the culmination of 12 years ex¬ploration, evaluation, and development. Initial milling operations encountered diffi¬culties with the circuit as designed. As a result, several modifications and improve¬ments were made to the plant. This article is intended to assist other companies developing projects of this type and complexity. It discusses the mine's de¬velopment from feasibility and construction through start-up. The operation, as it exists today, is reviewed including the modifica¬tions and improvements made since start-up. History The mine is situated in Jefferson County, MT within the historic Corbin-Wickes min¬ing district. Underground mining began in 1864 and flourished until the early 1900s. Between 1864 and 1900 the vein deposits in the district produced about $41 million dol¬lars worth of lead and silver ores containing subordinate amounts of zinc, copper, and gold. At various times, three smelters were operated in the area.