Pegasus’ Gold Limited, Gold/Silver Operations At Zortman, Montana

Pegasus' Gold Ltd. operates two gold/silver heap leaching operations in the Little Rockies area of Montana. The Little Rockies has produced gold from underground operations on an intermittent basis from the 1880's to the early 1950's and from the open-pits on a continuous basis since 1979. Run-of-the-mine ore is drilled, blasted, sorted, loaded and hauled. The waste is dumped and compacted into 30 meter (100 foot) fills to be used for future leach pads. The leach pads have a central drain system and the impermeable membrane is constructed of bentonite and 30 mil PVC. The plants which have beenexpanded to 4900 Ipm (1300 gpm) capacity use the Merrill-Crowe process for gold and silver recovery. 4600 liters (1200 gpm) of the 9500 Ipm (2500 gpm) spray capacity is recycled through the old leach pads for upgrading before being processed. The gold/silver precipitate is smelted and the resultant dore' is shipped to a buyerhefiner. 1983 projected production is 2,177 kg (70,000 02s) of gold at a cost of less than $10/gm.