GOLD PRODUCTION TO START AT KETZA RIVER
Canamax Resources Inc and Pacific
Trans-Ocean Resources Ltd said they conditionally approved
starting production at their jointly owned Ketza River gold
deposit in the Yukon after a study recommended the move.
    They said production was conditional on approval of a water
license and arrangement of appropriate financing. They
estimated development costs for the mine and mill would total
21.1 mln dlrs, including three mln dlrs of working capital.
    The feasibility study anticipated gold production of 49,600
ounces a year at a cost of 129 Canadian dlrs a short ton, they
said.
    Canamax and Pacific Trans-Ocean said the project would
yield a 40 pct after-tax real rate of return at a gold price of
400 U.S. dlrs an ounce.
    They said they would mine 460,000 tonnes of proven and
probable mineable reserves of oxide ore grading 0.45 ounce gold
per ton at a yearly rate of 112,000 tonnes for a mine life of
4.25 years.
    Possible reserves of 75,000 tonnes grading 0.38 ounce gold
per ton at the break zone would extend mine life by a year,
with considerable potential for development of further oxide
ore reserves at the deposit, they said.
 Reuter
