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<br /> Echo Bay-starving production at Illipah-gold=siwer=
<br /> By Karen Walenga mediately available, but Broughton said the life of two to three years. +
<br /> 1 Staff Reporter company "looks tOerate in the $250 (per One dedicated,leach*" use `'`
<br /> Echo Bay Mines Ltd is beginning gold ounce)cash-cost,ra e.'* operation, which also recovers`a"
<br /> production this fall at a seventh The work force at lWpah will consist of amount of silver as a byproduc� aceacia
<br /> operation—the new Illipah openpit, heap Echo Bay's own geological and engineering the vice president.
<br /> leach project in Nevada's White Pine County. staff,plus a contract miner,W.E.Vining,said
<br /> ' According to Echo Bay's vice president of Broughton and Echo Bay's manager of com- The Illipah project was an er develagxner
<br /> corporate affairs, A. Paddy Broughton, the munications, Nancy Long. Long added that when Echo Bay in October 1986 pur�^hased t[
<br /> first gold production is expected in September Echo Bay currently has 18 full-time em- Precious metals assets of Tenneco Mineral
<br /> from Illipah,located between Eureka and Ely ployees at the operation plus one temporary for$130 million. In addition to Illipah,Ed
<br /> and about six miles north of Little Antelope. worker, but no employment fi Bay acquired from the Tenneco the Mcco
<br /> ' gore was im-
<br /> For 1987, the company expects "nominal" mediately available for the mining con- project in Nevada, located about a0 nu7e
<br /> production of between 5,000 and 6,000 ounces tractor. south of Battle Mountain; the Manhatta
<br /> of gold.As of 1988,full production is projected project in Nevada's Nye County;the Boreali
<br /> at 25,000 to 30,000 ounces annually,Broughton Exploration is continuing at the site, the project in Mineral County,.Nevada; and th
<br /> told PAY DIRT September 9th. - vice president noted. Proven and probable Randsburg property in Californ_ia. '(Se
<br /> ore reserves,as of December 1986 listed ) s
<br /> Mining at the Illipah openpit initially began er ,were related McCoy story.)
<br /> as part of development at the project.Mining as containing 34,000 ounces of gold. In ad-
<br /> dition, "other mineral inventory" includes Echo Bay also operates the Round Mom
<br /> _"in earnest"commenced in the second quar- ro fain old project in Nevada in which i:,has
<br /> ter of this year and heap leaching started in another 22,500 ounces. g P
<br /> 50 percent interest, plus two other, q'�
<br /> August,the vice president said. Broughton said the Illipah deposit is small owned,producing gold mines in Color*lo gh
<br /> No specific production cost figures were im- and the project at present has an estimated Canada's Northwest Territories.
<br /> i
<br /> ! Reorganization, mechanization get Sunnyside into, the black
<br /> From The Silverton Standard The lowered cost of production has allowed done on Highway 110, the road that lead,
<br /> �I Silverton,Colorado—August 6th the Sunnyside to blend lower grade ores from the mine.
<br /> Changes in mining methods and a massive old dumps near Lake Emma. "We are very happy about the 110 proje-,
<br /> restructuring of the labor force has allowed At the mill,changes have also been made. We've worked with Bill Simon (omit
<br /> the Sunnyside mine to turn$700,000 of red ink Due to a change in state law which Sun- commissioner) and he's done a good job
<br /> in the first quarter of 1987 into second quarter nyside workers and management backed, getting it together."
<br /> earnings of $500,000, according to General employees may now work more hours. This One issue of local concern is &e of
<br /> Manager Fred J.Sveinson. has allowed production workers at the mill to Mayflower mine tramway. The tram,vdik
<br /> The changes, implemented by Sveinson, work 12-hour shifts. is believed to be the last still standing i
<br /> have lowered the cost of gold production from The mill is in operation six days a week 1124 Colorado, has become a safety cone= t
<br /> $380 per ounce to$245 per ounce. hours a day"with maintenance scheduled for officials at Sunnyside.
<br /> At-the mine, the emphasis is on increased the remaining day. Production is said to The Sunnyside will have the cable x-rraye
<br /> mechanization. Track in the Terry Tunnel is average 670 tons a day. to determine its strength and examim th
<br /> being removed, with rubber-tired mining The mill's capital improvement budget has towers.
<br /> machines taking the place of motors and ore been inch a¢ed any acc lerated to help Members of the San Juan County Md rl&
<br /> cars. in a its aging equipment.—-_ Society are hoping that money may be of
<br /> i
<br /> Main working areas are also slated foc Another change involves Herman Todeschi, tained from the State Historical Presermfic
<br /> track removal and mechanization. who is now Sunnyside's Surface Su - Fund to insure that this historic treasur
<br /> In an interview with the Standard,Sve' son tendent,responsible for cleaning the prope y continues to exist.
<br /> said, "Our development work is proc g around the mine portal and the Terry Tunn 1. Sveinson indicated that the Sunnysie
<br /> slower that we had hoped but it should pic up Todeschi's responsibilities also include d would be willing to work with the
<br /> as we increase our mechanization of t1le,reclamation�anr:��work=ers
<br /> society to preserve the structure,
<br /> mine." aining for When asked to assess the progress 1w
<br /> Sunnyside officials hope the delivery of two both miners part of a nyside has made, Sveinson said, "Our air
<br /> Tamroc electric-hydraulic single-boom drill continuing program to increase productivity, was to make money;we have."
<br /> jumbos will hasten development work. The Sunnyside has asked suppliers to
<br /> According to Svemson, one miner can do provide demonstrations on how to best use
<br /> the drilling normally assigned to several their products. Echo Bay managers with
<br /> workers with these rubber-tired machines special expertise will be rotated into Sun-
<br /> and their maneuverability allows them to be nyside operations to share their experience BP changes Standard Oil
<br /> easily moved from one working area to with co-workers. name to BP America
<br /> another. Sveinson said that the Sunnyside is Standard Oil Company has become 9
<br /> Other changes underground include the examining properties in the Four Corners America,marking an identity change that i
<br /> establishment of a face bonus and a new work area for possible acquisition and has part of British Petroleum Company's re stm
<br /> schedule which uses three crews rather than discussed buying ore from the Bessie G.mine taring of its U.S.holdings.
<br /> the previous four. in the La Platas. The staff at the Sunnyside BP took full control of Standard 01 1W
<br /> Sveinson said, "Our emphasis has been on will also supply techincal support to Echo year by acquiring 45 percent of the compW'
<br /> lowering the cost of.production per ounce of Bay's Congress mine in Arizona. shares,in addition to the 53 percent it ahead
<br /> gohl." Sveinson is also pleased that work will be owned,in a deal valued at about$7.8 billim
<br /> Page 12A Rocky Mountain PAY DIRT for September 1987
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