Amax's Sleeper mine exceeds expectations on all counts as low-cost gold producer

Introduction The Sleeper mine is a near-surface gold mine located in a remote area 56 km (35 air miles) northwest of Winnemucca, NV (Fig. 1). The deposit was discovered in 1984 by an Amax exploration geologist. Favorable drilling results led to feasibility studies and metallurgical testwork. Final evaluation of the mine potential proceeded very quickly. The project received Amax board approval in July 1985. Eight months later, the process plant was fully operational. The first gold ($1 million) was shipped one month later, in March 1986. Total plant capital was $27 million. Payback was achieved in six months. The Sleeper mine was expected to produce 1.6 t (53,000 oz) of gold and 1.3 t (41,000 oz) of silver annually. However, the ore body exceeded all expectations. Production for the first 10 months of operation amounted to 4 t (128,000 oz) of gold and 2.9 t (94,000 oz) of silver. Direct cash operating costs are in the $1.77/g ($55 per oz) range. Amax is actively conducting exploration nearby for additional reserves to extend the mine's life. (See update on page 242.) Geology The Sleeper gold deposit is located on the northwestern flank of the Slumbering Hills and in the Awakening Mining District. Rocks exposed in the vicinity of the deposit are interbedded siltstones, sandstones, and limestones of Triassic age. They are overlain by latite lava flows and tuffs of Tertiary age. Dikes and sills of latite and andesite intrude the sedimentary rocks. Quaternary deposits of mostly sand with minor gravel and clay cover a pediment containing the gold deposit. The sedimentary and volcanic rock units have been transsected and offset by extensive north- northeast trending faults and less abundant northwest trending faults. Both fault systems fractured and prepared the ground for subsequent invasions of mineral-bearing hot spring geothermal waters. The hot spring systems produced widespread hydrothermal alteration and gold mineralization at silicified centers near feeder fault structures. The deposit is hosted by siltstone and latite that have been hydrothermally brecciated. The main breccia is elongated north-northeasterly. The hydrothermal breccia zones appear to dip steeply to the west. Gold mineralization consists of native gold and electrum deposited in two or more high-grade quartz-breccia veins. Lower grade gold mineralization occurs