Alta Gold Co. Clears Major Permitting Hurdle at Olinghouse
HENDERSON, Nev.--(BUSINESS WIRE)--Feb. 19, 1998--Alta Gold Co. (Nasdaq/NM:ALTA - news) Thursday announced that the U.S. Bureau of Land Management has issued the Final Environmental Impact Statement in regard to the plan of operation for the company's Olinghouse gold mine, located in Washoe County, Nev.
The Record of Decision is expected to be issued before the end of March 1998, at which time Alta will be permitted to begin
site development and construction at Olinghouse.
Olinghouse currently contains more than 500,000 ounces of proven and probable gold reserves with an average grade of 0.042 oz/ton gold. These reserves were calculated on the basis of a gold price of $300/oz and have been verified by Pincock Allen & Holt (PAH), an independent mining engineering firm. Incremental increases in the price of gold will result in a substantial increase in the gold reserves.
Gold production is scheduled to begin in the third quarter of 1998. Based on a Feasibility Study completed by the company in October 1997 and verified by PAH, the initial mine at Olinghouse is expected to produce an average of 100,000 ounces of gold per year over a period of at least five years. The average cash cost of production is expected to be less than $200/oz.
Robert N. Pratt, president and chief executive officer of Alta Gold, stated: ''The company is rapidly approaching the finalization of a 100-percent-debt financing package for Olinghouse. Site development and construction is scheduled to begin upon the issuance of the Record of Decision and the receipt of financing.''
The company is engaged in the exploration, development, mining and production of gold on properties in Nevada. The company also has three base-metals properties in the western United States which are in various stages of development.
This news release contains statements that may be considered forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, such as management's expectations regarding scheduled gold production from and
the overall economics of the company's mining properties. Such forward-looking statements are inherently uncertain, and the
actual results may differ from management's expectations. Further information on potential factors that could affect the financial
condition and results of operations of the company are included in the filings of the company with the Securities and Exchange
Commission, including, but not limited to, the company's annual report on form 10-K for the fiscal year ended Dec. 31, 1996. |
