Santa Fe Pacific Gold Targets Million Ounces/Year Production

Santa Fe Pacific Gold, headquartered in Albuquerque, NM is expanding its operation at the Twin Creeks Mine in Nevada. The $250-million sulfide expansion project, including the Sage Mill, is under construction and is 80% complete. Also, additional mining equipment has been purchased to haul the sulfide ore to the mill. With the expansion, employment at Twin Creeks is expected to reach approximately 970 people by the end of 1996. Santa Fe Pacific Gold now owns and operates three gold mines in the United States and is involved in several other gold projects. The three currently operating mines are the Twin Creeks, Mesquite and Lone Tree mines. The Mesquite Mine is located in California’s Imperial Valley. Lone Tree is located 55 km (34 miles) southeast of Winnemucca, NV. The company’s total gold production from these operations is expected to be in the range of 26.3 to 26.6 t (845,000 to 855,000 oz) in 1996. This compares to a total production of about 124 kg (4,000 oz) for the company in 1989. Production costs range from $6.90to $7.25/g ($215 to $225/oz). At the end of 1995, the company reported proven and probable reserves of 556.7 t(17.9 million oz) of gold.