Mesquite
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0.5% to 2.0% NSR Production restarted in 2008 2,755,449 oz (Au) 1,526,551 oz M&I / 3,798 tons @ 0.023 oz/ton Inf. (Au) Western Goldfields, Inc. |
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The Mesquite Mine produced approximately 3.0 million ounces of gold from 1986 through December 31, 2005. The mine is located in southern California and is permitted for open pit mining and heap leach processing. Newmont owned and operated the mine from 1997 until 2001, at which time it was placed on care and maintenance during a period of low gold prices. Newmont subsequently sold the mine to Western Goldfields, Inc. (“WGI”) in 2003.
The entire Mesquite property is subject to an NSR royalty, ranging from 0.5% to 2.0%, depending on the claim block and each may be paid in cash or in kind.
WGI released their 2007 year-end results on March 10, 2008, with 6,889 ounces of production for 2007 from its Mesquite Mine leach pads. WGI also achieved new ore production at Mesquite three months ahead of schedule and on budget. WGI announced an improved mine plan during 2008 that projects increased production to approximately 700,000 ounces of gold for the four-year period from 2009-2012. WGI also announced the new reserves and resources at Mesquite. Reserves dropped modestly to 2.76 million oz as a result of mining depletion, while measured and indicated resources, inclusive of reserves, increased by 10% to 4.3 million ounces of gold as at March 10, 2008.
¹ Resources inclusive of reserves