At Diamond Hill, plans call for recovering gold from waste dumps and above-water stopes while dewatering and drilling to confirm 350,000 additional ounces, targeting a nine-year mine life with annual production of 40,000 ounces.
The Diamond Hill Mine was put into production by Pegasus Minerals in 1996. Ore was shipped from the mine site near Townsend, MT, to the Diamond Hill Mill, which was constructed for the express purpose of processing the ore within the Montana Tunnels Mill complex.
Despite producing a high-value concentrate, the low gold prices between 1996 and 2000 meant Diamond Hill was essentially operating at breakeven. Pegasus invested virtually nothing in establishing mine reserves for ongoing operations, and in 2000 the mine was shut down.
Apollo Gold Inc. acquired the Diamond Hill Mine as part of its purchase of Montana Tunnels. Apollo drilled several holes at Diamond Hill, with results indicating the potential for an additional 350,000 to 400,000 ounces of gold.
Our mine plan for Diamond Hill is to process existing waste dumps to recover approximately 3,500 ounces of gold and to mine above-water ore stopes containing 13,700 ounces of gold. This program is expected to generate $43.8 million in cash flow.
While this program is underway, the mine will be dewatered and drilled with the goal of confirming an additional 350,000 ounces of gold. Success in defining this reserve is expected to lead to a nine-year mine life, with annual production of 40,000 ounces of gold.
