The Converse project is located in Nevada’s Battle Mountain trend and is in close proximity to SSR Mining’s Marigold mine and Barrick Gold’s Lone Tree mine. The Redline deposit at the Converse project is a skarn deposit with gold mineralization occurring with chalcopyrite and pyrrhotite.
A Preliminary Economic Assessment was released in 2012 which envisions an open pit mine and heap leach operation with a throughput rate of 50,000 tons per day. The study estimated initial capital costs to be $455 million with total life of mine production of 2.2 million ounces of gold and 8.5 million ounces of silver over 13 years.
The March 2014 Measured and Indicated Mineral Resources at Converse consist of 363.1 Mt at 0.52 g/t containing 6.1 million ounces of gold (0.27 g/t Au cut-off) and Inferred Resource of 37.5 Mt at 0.49 g/t containing 0.6 million ounces of gold.