Tuesday, December 15, 2009

Drilling May Lead To Eureka Mines Re-Opening

A major mining company has plans to re-open mining in about a year in what is described as the richest silver, leaf and zinc deposit in the United States.

Chief Consolidated Mining Co. is drilling core samples in the extension of the old Kennecott Bergin Mine and the Trixie Mine for gold, silver and copper, "to make sure the deposits are there," chairman and chief executive officer Gordon Blankstein said.

Chief owns about 16,000 acres of land, which includes part of Eureka and south and west of the historic mining town on both sides of U.S. 6. Chief is one of the largest landholders in Utah. The company is refurbishing an old mill as part of the return to mining there, Blankstein said. The mill was rebuilt about nine years ago.

"The Bergin is extremely rich," Blankstein said.

Over the years, Kennecott Resources, Sunshine Mining Co. and Chief have drilled more than 100 exploration holes in the district. Current crews are confirming the findings made then. They finished drilling hole No. 1 on Nov. 21 at a depth of 1,721 feet. Samples were sent for assay. A second hole went to 1,700 feet. Crews are also working on a third hole.

In the early years, mining would stop when the miners hit water. Today's miners have better ways of pumping and treating the water to continue mining. It has been studied as a source for potable water for the developing west side of Utah Lake, Blankstein said.

However, the Trixie mine doesn't have water issues, he said.

The company also plans to update a 2001 feasibility study before beginning mining operations in the East Tintic Mining District. Historically, the district has yielded 2.3 million ounces of gold, 250 million ounces of silver, 250 million pounds of copper, 2.2 billion pounds of lead and 1 billion pounds of zinc, Blankstein said.

Andover Ventures of Vancouver, British Columbia, acquired 65 percent of Chief in 2008. Chief has been mining in the district sporadically since 1876.

"If we open a mine there, we will be creating jobs," Blankstein said. "There will be jobs created in the mill and in the underground mines."

Two drilling crews are working there now.

Several years ago, the Environmental Protection Agency mandated environmental cleanup in Eureka from lead residue left from the old days of mining. That work delayed Chief's mining pursuits but is nearing completion, he said.

Source: Deseret News

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