Pegasus' Gold Ltd. Zortman Mining, Inc. - Landusky Mining, Inc. Operations

Gold and silver processing techniques are some of the oldest in the mining industry. Gold mining of high grade veins and deposits has existed for centuries. However, only with the higher gold prices in recent years and heap leaching techniques have the low grade gold and silver deposits become feasible to mine and process economically. By mining and hauling 3,600,000 tons of ore per year at an average grade of 0.03 ounces/ton gold and 0.385 ounces/ton silver, the Zortman- Landusky operations became profitable in 1982. To maintain profitably, a stripping ratio of less than one ton of waste to one ton of ore, and mine run ore placed on the leach pads which will yield approximately seventy percent go1 d recovery.