Escalante: Major Silver Mine Nears First Year of Full Operation

In Oct. 1981, Ranchers Exploration and Development Corp. began producing silver bullion from the Escalante mine and mill complex, located in southwestern Utah. Current in-place reserves are estimated at 2.42 Mt (2.67 million st) of ore, containing about 936 t (33 million oz) of silver at an average grade of 428.5 g/t (12.5 oz/st). The vein-type deposit is being mined underground through a decline that is currently 864 m (2,835 ft) in length, but will ultimately be at least 1.5 km (5,100 ft) long. The mine is completely mechanized with rubber-tired equipment, and is producing 680 t/d (750 stpd) of ore, five days a week, or 177 kt/a (195,000 stpy). Additional capacity is available. The cyanide leach mill and associated refinery are presently producing 4.35 t/month (140,000 oz/month) of silver bullion-an an¬nual rate of about 52.25 t (1.68 million oz). With minor modifications, the mill can produce up to about 70 t/a (2.25 million oz/year), and expansion is currently underway. History The Escalante property is located 68 km (42 miles) west of Cedar City, UT, on the west side of the Escalante Valley, where the vein forms a gentle ridge in an area of low, rolling hills. For years, the vein has been the object of considerable exploration, but never became more than a sporadic producer, primarily due to low silver prices. Heber Holt of Enterprise, UT, staked the original four claims in 1896; they were patented in 1910. During the next 48 years, limited exploration and mining activity was conducted on the property. Systematic evaluation and development did not, however, begin until March 1958, when Samuel S. Arentz, a prominent mining engineer and consultant, formed several joint ventures with mining and oil companies that conducted drilling, drifting, mining, and water drawdown tests on the property. However, it remained uneconomic, principally because of low silver prices and costs for pumping large flows of underground water. In 1975, Ranchers obtained an option on the property and in 1979 began a drilling program. As of May 1982, the company had drilled 70 core holes, bringing the number of exploratory holes drilled on the property to 138. Test mining began in 1979 as silver prices increased, and full mine development began in 1980. Mill construction began in Sept. 1980, and on Aug 29, 1981, the first ore was fed to the mill.