Mining Intelligence and News
United States

Manh Choh (Peak) Project

Click for more information

Categories

Overview

Mine TypeOpen Pit
StageConstruction
Commodities
  • Gold
  • Silver
  • Gold Equivalent
Mining Method
  • Truck & Shovel / Loader
Production Start... Lock
Mine Life... Lock
SnapshotThe Project was previously named “Peak Gold” but was renamed “Manh Choh” in March 2021.

The Manh Choh project consists of two small open pits that will be mined simultaneously throughout the life of mine.

The mine plan does not require the construction of a mill or tailings facilities at the project site as the ore will be hauled to and processed at Fort Knox’s existing mill and infrastructure, benefiting both the project and the mine.

Project highlights:
• Manh Choh has been mining and stock piling ore since August, 2023;
• Ore transport of direct shipping ore from the Manh Choh mine site to the Fort Knox stockpile commenced in November, 2023;
• All contracted trucks received, the majority of the drivers onboarded, trailer manufacturing now complete, and mill modifications remain on plan.

Owners

SourceSource
CompanyInterestOwnership
Contango ORE, Inc. 30 % Indirect
Kinross Gold Corp. (operator) 70 % Indirect
Kinross Gold Corporation is the beneficial owner of KG Mining (Alaska), Inc. (“KG Mining”). KG Mining is a 70% owner and managing member of Peak Gold, LLC (“Peak Gold”), which operates the Manh Choh mine. Contango retains a 30% non-operating minority interest in the project.

Contractors

Lock

- subscription is required.

Deposit type

  • Skarn
  • Vein / narrow vein
  • Hydrothermal

Summary:

The Manh Choh Project contains two deposits, the Manh Choh South (MCS) and Manh Choh North (MCN). Both deposits have appreciable quantities of gold (Au), silver (Ag), and copper (Cu) associated with pyrrhotitechalcopyrite-arsenopyrite dominant stratabound replacement bodies interlayered with calcium-iron (Ca-Fe) amphibole which replace the calcareous portions of the interlayered calcareous to argillaceous schist unit. High angle discordant pyrrhotite-chalcopyritearsenopyrite-spalerite-galena-boulangerite-pyrite-amphibole-calcite-quartz veins show open space textures and are proposed to represent the D2 hydrothermal fluid conduits connecting from the source pluton to the chemically responsive host rock trap. The highest gold and silver grades are associated with the junctions of the discordant veining and the calcareous schist with precious metal grade rapidly decreasing down dip, and gently tapering up dip. Two major discordant vein orientations, one generally striking E-W and dipping steeply N, and a second one striking NW-SE and dipping steeply N control the shape of the mineralized body, which is elongate in the E-W direction with a NW oriented tail.

Gold, silver, and copper ore from the MCS and MCN deposits and is associated with sulfide mineralization largely within amphibole skarns in a complex folded geometry. Ore minerals include native gold, electrum, chalcopyrite, pyrargyrite (Ag3SbS3), acanthite (Ag2S), argentopyrite (AgFe2S3), and hessite (Ag2Te). Additional metals with anomalous values include bismuth (Bi), tellurium (Te), arsenic (As), antimony (Sb), zinc (Zn), cadmium (Cd), nickel (Ni), cobalt (Co), and tungsten (W), which contrasts with the known Au-Bi-Te ± As metal associations of intrusive related deposits in Interior Alaska such as Fort Knox and Pogo mines (Flanigan et al., 2000). Metallurgical testing has been conducted with respect to the recovery of gold and silver by cyanidation and results suggest that the mineralization is amenable to recovery.

MANH CHOH SOUTH DEPOSIT
MCS is a largely unoxidized distal skarn hosted in recumbent folded calcareous schist and marble interbedded with amphibolite grade argillaceous schist and quartzite. A penetrative foliation/axial planer cleavage characterizes the Chief Danny prospect, this cleavage is striking 150° and dipping 20°-30° SW. The numerous recumbent isoclinal folds measure 0.1 cm to 2.0 cm across the axis and form a composite overturned isoclinal fold shape with its axis sub parallel to the strike of foliation and opening to the NE. This larger composite fold body of calcareous schist, also opening to the NE, crops out at the surface, measures 200 m vertically and 300 m horizontally in cross section. In long section, the fold measures just over 500 m. The calcareous schist body is dissected by three to four high angle NE-SW trending normal faults which display offsets of 2 m to 10 m, appear to be post-mineralization in age, and have a periodicity of 100 m along the strike of the folded calcareous schist body. The eastern edge of the composite fold is proposed to be truncated by the B1 fault, a N-NE striking, moderately east dipping (45°-50°) reverse fault, also of D2 age. At least one NW striking, sub-vertical fault, thought to be a D2 feeder zone, can be traced along the long axis of the mineralization. This fault is characterized by +100 g/t Ag values associated with highly anomalous Pb, Sb, and Zn with the highest-grade concentration of these metals in the extreme SE portion of the MCS deposit.

Gold, silver, and copper mineralization is associated with pyrrhotite-chalcopyrite-arsenopyrite dominant strata bound replacement bodies interlayered with Ca-Fe amphibole dominant gangue which has replaced the calcareous portions of the interlayered calc-schist units. High angle discordant pyrrhotite-chalcopyrite-arsenopyrite-spalerite-galena-boulangerite-pyriteamphibole-calcite-quartz veins show open space textures and are thought to represent the hydrothermal fluid conduits connecting the source plutonic system to the chemically responsive host rock. The highest Au and Ag grades are associated with the junctions of the discordant veining and the calcareous schist with precious metal grade rapidly decreasing down dip, and gently tapering up dip. Two major discordant vein orientations have been identified at MCS one generally striking E-W dipping steeply to the north (the 275 fault), the other striking NW-SE and dipping steeply north (the 305 fault). Combined, these two feeder systems control the shape of the mineralized body, which is elongate in the E-W direction with a NW oriented tail. The intersection of these major discordant veins and secondary N-E to N trending faults creates east dipping shoots which have localized and accentuated hydrothermal fluid flow. As is true at the MCN resource, the eastern portion of these feeders returned significantly higher Ag grades (>100 g/t) associated with higher Pb, Sb and Zn, possibly indicating a higher temperature and fluid flow regime on the extreme SE end of the MCS resource.

MANH CHOH NORTH DEPOSIT
MCN is a largely oxidized distal skarn hosted in recumbent folded calcareous schist and marble interbedded with amphibolite grade argillaceous schist and quartzite. A significant portion of the MCN resource area is oxidized to depths in excess of 50 m below surface, resulting in widespread Fe, Cu, and As oxides. This strong, pervasive oxidation destroyed the magnetic and conductive pyrrhotite-arsenopyrite-chalcopyrite skarn mineralization, resulting in geophysical signatures unlike those over the unoxidized MCS zone.

A penetrative foliation/axial planer cleavage characterizes the Chief Danny prospect, striking 150° and dipping 20° to 30° to the SW. The numerous recumbent isoclinal folds measure 0.1 m to 2.0 m across the axis and form a larger composite overturned isoclinal fold shape with its axis subparallel to the strike of foliation and opening to the SW. This composite fold body of calcareous schist measures 150 m vertically and 100 m horizontally in cross section. In long section, the fold measures just over 270 m over the NW portion of the resource and is proposed to have had the upper limb and hinge eroded in the SE portion of the resource. The calcareous schist body is dissected by four to five high angle NE-SW trending normal D3 faults which display offsets of 2 m to 10 m, appear to be post-mineralization in age, and have a periodicity of 100 m along the strike of the folded calcareous schist body. The eastern edge of the resource area is proposed to be truncated by the B1 fault, a N-NE striking, moderately east dipping (45° to 50°) reverse D3 fault.

Gold, silver, and copper mineralization is associated with pyrrhotite-chalcopyrite-arsenopyrite dominant strata bound replacement bodies interlayered with Ca-Fe amphibole dominant gangue which has replaced the calcareous portions of the interlayered calc-schist units in the NW half of the resource. The weathering product of this mineralization, dominated by hematite, limonite, goethite, and scorodite-rich clays, make up a significant portion of the SE resource area. High angle discordant pyrrhotite-chalcopyrite-arsenopyrite-spalerite-galenaboulangerite-pyrite-amphibole-calcite-quartz veins show open space textures and are thought to represent the D2 hydrothermal fluid conduits connecting the source plutonic system to the chemically responsive host rock. The highest Au and Ag grades are associated with the junctions of the discordant veining and the calcareous schist with precious metal grade rapidly decreasing down dip, and gently tapering up dip. At least two steeply dipping, NW striking D2 feeder faults have been identified within the MCN zone, the 125 and 110 faults. As in the MCS zone, the eastern portion of these feeders returned significantly higher Ag grades (>100 g/t) associated with higher Pb, Sb and Zn.

Reserves

Lock

- subscription is required.

Mining Methods

Lock

- subscription is required.

Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

Lock

- subscription is required.

Production

CommodityProductUnitsAvg. AnnualLOM
Gold Payable metal oz 194,670899,000
Gold Metal in doré oz 899,900
Silver Payable metal oz 1,177,500
Silver Metal in doré oz 1,189,400
Gold Equivalent Metal in doré oz 914,300

Operational metrics

Metrics
Stripping / waste ratio  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Total tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2023 study.

Production Costs

CommodityUnitsAverage
Cash costs Gold Equivalent USD  ....  Subscribe
All-in sustaining costs (AISC) Gold Equivalent USD  ....  Subscribe
Assumed price Silver USD  ....  Subscribe
Assumed price Gold USD  ....  Subscribe
* According to 2023 study / presentation.

Operating Costs

Currency2023
OP mining costs ($/t mined) USD 5.97 *  
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2023 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 205.6
Refining and transportation $M USD  ......  Subscribe
Transportation (haulage) costs $M USD 249.4
G&A costs $M USD 72.7
Total OpEx $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Operating margin (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
Net Income (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 5% $M USD  ......  Subscribe
After-tax NPV @ 5% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe

Required Heavy Mobile Equipment

Lock

- subscription is required.

Personnel

Mine Management

Job TitleNamePhoneEmailProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jun 16, 2024
....................... Subscription required ....................... Subscription required Subscription required Jun 16, 2024
....................... Subscription required ....................... Subscription required ........... Subscription required ........... Subscription required Subscription required May 12, 2023

Total WorkforceYear
...... Subscription required 2023

Aerial view:

Lock

- subscription is required.