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Mining industry

Amax Gold Inc. Announces Construction of Fort Knox Gold Mine

Strategic Insights

— 1 min read

Amax Gold Inc.'s wholly owned subsidiary, Fairbanks Gold Mining Inc., has initiated construction on the Fort Knox Gold Mine, a significant project aimed at extracting gold in Alaska. The mine, set to start production by late 1996, is expected to produce over 350,000 troy ounces of gold per year for the first five years and approximately 300,000 ounces annually for 12 years.

Key Takeaways:

  • The Fort Knox Gold Mine, located 15 miles northeast of Fairbanks, Alaska, is expected to process 36,000 tons of ore per day.
  • The mine will produce gold at a rate of over 350,000 troy ounces per year for the first five years, followed by an average of over 300,000 ounces per year for 12 years.
  • Morrison & Knudsen Corp. has been selected as the general contractor, responsible for managing construction and procurement.
  • Golden Valley Electric Association has been authorized to proceed with the construction of a 29-mile power line to deliver electricity to the mine.
  • The mine is a significant project for Amax Gold Inc., with plans to operate in Alaska and Chile, and exploring for gold in North, Central, and South America.
  • Amax Gold Inc. has a stake of 42% owned by Cyprus Amax Minerals Co. and its common stock is listed on the New York and Toronto stock exchanges.
  • The Fort Knox Gold Mine is a substantial undertaking, with a long-term production plan and a significant expected output.

Statistics:

  • The mine will process 36,000 tons of ore per day.
  • The expected gold production for the first five years is over 350,000 troy ounces per year.
  • The average gold production for 12 years is over 300,000 ounces per year.
  • The mine is expected to maintain production levels for 17 years (5 years with 350,000 ounces/year + 12 years with 300,000 ounces/year).
  • Amax Gold Inc. is 42% owned by Cyprus Amax Minerals Co.

Sources:

  • Amax Gold Inc. (NYSE: AU; Toronto)
  • Fairbanks Gold Mining Inc.
  • Morrison & Knudsen Corp.
  • Golden Valley Electric Association
  • Cyprus Amax Minerals Co.

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