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| $168.5 Million Expansion Completed At Cresson Mine |
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$168.5 Million Expansion Completed At Cresson Mine
From The Mining Record - Tuesday, January 07, 2003
VICTOR, CO - Cripple Creek & Victor Gold Mining Company (CC&V) completed a two-year $168.5 million expansion in October, 2002. CC&V expects to almost double its production in 2003 to approximately 414,000 ounces of gold annually. The mine site and production facilities operate 24 hours a day and are the only large scale gold mining operation in the state. CC&V received approval from the state in August 2000 to expand operations, continuing mining through 2012. The capital investment assures that CC&V will be able to produce gold efficiently and with responsible environmental controls. Some of the features of the expansion include the two-mile relocation of State High-way 67, which ran through the mine property. Some $16.9 million of CC&V funds were used to realign the highway and build a 250 foot bridge across a deep ravine. The 1,218 foot long bridge is the tallest on the state highway system. The truck and shovel mine operation is supported through a new $9 million maintenance and fueling station, designed to assure that the hauling fleet stays productive and efficient. Each truck is 25’ high and 47’ long and is capable of holding one million pounds fully loaded. “CC&V decided to further invest in its operations to reduce costs and secure better returns for each participantís shareholders. The Cresson operation is a leader in employee health and safety issues as well as community sustainability and protection of the natural environment,î said AngloGold North America Inc. president Jim Komadina.
Extensive monitoring and daily environmental testing assures that the operation remains in compliance with tough local, state, and federal licenses and standards. CC&V manages an ongoing reclamation program that tracks mining activity, reshapes contours, redistributes topsoil, and plants native trees, shrubs and grasses. To guarantee funding for the reclamation efforts, CC&V has currently posted a reclamation bond with the state in the amount of $34 million and it will reach $52 million by 2012.
Further potential exists for the discovery of future mineral resources and the conversion of these to reserves. A highly prospective geological environment exists in which higher grade deposits external to open pit limits could result in extensions to the life-of-mine plan.
CC&V is the largest private employer in Teller County, with nearly 300 people employed in support of mining operations. CC&V is a joint venture between AngloGold (Colorado) Corp. based in Greenwood Village and Golden Cycle Gold Corporation, based in Colorado Springs. The joint venture, managed by AngloGold North America Inc. is the U. S. subsidiary of AngloGold Ltd., the worldís second largest gold mining producer, based in South Africa.
Underground mining at CC&V was undertaken for 70 years until 1961. Thereafter, all mining activity lapsed for over a decade until the start-up of small-scale surface mining using heap-leaching methods. In 1991, surface mining was started on a large-scale and continued to grow with the start of production from CC&Vís Cresson mine in early 1995.
Gold and silver have been mined in the Cripple Creek and Victor Mining District since the 1890s. The Cripple Creek district is dominated by a Tertiary-age alkaline igneous complex consisting of diatreme and intrusive and extrusive rocks emplaced within older Precambrian terrain. The complex is 6.4 km long and 2.3 km wide.
There are two main structural trends in the district: north-north-west and north-east, with high-grade gold mineralization occurring next to the major structural zones. Individual orebodies can be tabular, irregular or massive.
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