VANCOUVER–Fiore Gold Ltd. marked the fifth anniversary of the restart of the Pan Mine, and its transformation from a bankrupt asset to a safe and profitable operation, the company announced May 26.
The Pan Mine is in White Pine County near Eureka, and is a Carlin-style, open-pit, heap leach gold mine. Nearby is the company’s Gold Rock project and in Washington state is the Golden Eagle project.
“The five-year mark is a good opportunity to reflect on what we’ve accomplished at Pan, Gold Rock and Golden Eagle,” said Tim Warman, Fiore’s CEO. “Fiore has built a well-deserved reputation as one of the best operating teams in the business. I firmly believe we can take that culture of excellence we’ve developed at Pan and apply it to other mines that we either build or acquire, to create a leading, multi-asset gold producer.”
In 2016, Fiore Gold purchased the Pan Mine, the adjacent Gold Rock development project, and the Golden Eagle project for $5 million in a bankruptcy auction.
Although construction at Pan had begun only two years before under Midway Gold, other miners and investors who reviewed the project said Pan was fatally flawed and beyond saving.
The Fiore team believed otherwise and were confident in their ability to turn the mine around, the company reported in a May 26 press release.
Over the past five years, the Fiore Gold team has produced more than 150,000 ounces of gold and mined almost 50 million tons of rock, including over 20 million tons of ore processed and stacked on the leach pads.
Fiore Gold has also impacted the local and statewide economy, generating $47 million in wages and paid $5 million in taxes in Nevada over the past five years.
With safety a top priority, Fiore Gold surpassed 1 million hours worked without a lost-time incident in January 2021.
Fiore Gold also completed the federal environmental permitting and a Preliminary Economic Assessment for developing the next mine at Gold Rock, located 8 miles from Pan.
At the Golden Eagle project, the company reported a 2.0 million-ounce measured and indicated gold resource.
“While we are proud of our achievements to date, we are equally excited about the on-going prospects to optimize Pan and continue investing in Nevada,” Fiore Gold stated.
Over the next few months, Fiore Gold expects to assess potential optimizations at Pan including increasing the mining rate to the permitted 17,000 tons per day from the current 14,000 tons per day, as well as adding a secondary crushing circuit to improve gold recoveries.
The company switched from a run of mine operation to almost 100% crushed ore placement.
The team recently began mining the Black Stallion satellite pit at the Pan Mine and has encountered oxide ore at the surface at slightly higher grades than the overall reserve average.
Fiore Gold is nearing completion of the Phase 3 leach pad expansion, which will accommodate three years of additional production and most of the new reserves added in late 2020. With fresh ore planned to be placed on the new leach pad at the end of this quarter, the fiscal fourth quarter is expected to see the benefit of faster leach kinetics.
Planning is underway for the next phase of resource and reserve expansion drilling at Pan as the company looks to test some of the previously identified targets around the mine, particularly the Mustang target, and continue to grow the resource and reserve base.