UtahRails.net

(This page printed from UtahRails.net, Copyright 2000-2016 Don Strack)

Railroads and Mining at Tintic

This page was last updated on January 22, 2015.

(Return to Mining Index page)

Recent Tintic Mining Events

When opened in 1958, the Burgin mine was owned by the still-existing Chief Consolidated Mining Co., and leased by Chief to Kennecott. In 1969 Kennecott opened the nearby Trixie mine, leasing the location from South Standard Mining Co. Kennecott gave up the two leases in mid 1978 due to high costs, including pumping to fight the increasing water levels in the mines.

In November 1982, Chief Consolidated leased the Burgin mine to the Sunshine Mining Co. Operations began in November 1982 with Sunshine selling ores to Kennecott as smelter flux for its large smelter at Garfield on the south shore of Great Salt Lake. A heap leach gold mine was also opened at Burgin, but the entire mine was closed again in 1985.

Sunshine ended its lease of the Burgin mine in 1992, and in 1996 Chief Consolidated sold 25 percent interest in the Burgin mine to Tintic Utah Metals, a jointly held subsidiary of Chief Consolidated Mining Co., and Korea Zinc Company (Young Poong Corporation). As of 2008, the Burgin mine remained closed because it was still flooded.

As of late 2000, Tintic Utah Metals continued to process the dumps from the Trixie mine in its refurbished Burgin mill. The mill had been refurbished over a multi-year time period at a cost of $1.9 million to include the processing of gold and silver, in addition to its original lead and zinc capabilities.

In 1996, Chief Consolidated, through a new subsidiary called Chief Gold, purchased the Trixie mine and the 2200 acres it was located on, from South Standard Mining Co. In 2001, Chief Consolidated resumed mining operations in the Trixie mine, processing the ore at its nearby Burgin mill. During early 2002 operations in the Trixie mine were stopped due to unsafe conditions.

In 2005, after the original Chief Consolidated property within the Town of Eureka was added to the EPA's National Priorities List of polluted "Superfund" sites in 2001, the EPA and Chief Consolidated reached a $60 million cleanup agreement (Details of the EPA cleanup.)

In March 2008, Canadian investor Andover Ventures acquired 65 percent of Chief Consolidated from Genco Resources for about $5 million. The chief asset of Chief Consolidated Mining was 16,000 acres of land near Eureka, Utah, that the company hoped would yield valuable minerals. The company has been working to develop the Burgin Mine (silver, plus lead and zinc) and the Trixie Mine (gold, silver, and copper). Environmental cleanup obligations associated with earlier mining operations on the property have delayed the company's progress. (Details of the sale in 2008.)

In September 2008, Chief Consolidated and the U.S. subsidiary of Anglo American formed a joint venture to develop the porphyry copper, gold, and molybdenum property in the immediate vicinity of the old Trixie, Burgin, Iron King and Eureka Standard properties. Included in the deal was the sale of Korea Zinc's 25 percent interest in the Burgin mine. (Reuters, September 10, 2008) (Wikipedia page for Anglo American)

In late May 2009, Anglo American backed out of the deal.

October 2012
From NASDAQ, October 22, 2012:

Andover Mining Corporation (AOX.V) announced today that Chief Consolidated Mining Company, approximately 83.5% owned by Andover, has agreed in principle to enter into an Earn-In and Joint Venture Agreement with the Enirgi Group Corporation to develop, permit and mine the Burgin Mine Complex deposits (a Silver-Lead-Zinc rich massive sulfide system) located on a part of Chief's land holdings in the East Tintic Mining District, Utah.

Under the proposed terms of the Joint Venture Agreement, Enirgi would develop the project through prefeasibility study, feasibility study and into production by providing the capital to complete the studies. Following these steps and the arrangement of project financing for the mine and facilities development, Enirgi would earn 51% in the Burgin Complex. Chief would retain 49%. (NASDAQ Press Release, October 22, 2012)

February 12, 2014
Andover Mining Corp., which filed a notice on August 22, 2013, of intention to reorganize, was deemed bankrupt on February 12, 2014, under the provisions of Canada's Bankruptcy and Insolvency Act. After a number of extensions were granted by the Supreme Court of British Columbia, the company filed a proposal with its creditors on January 22, 2014. Abakhan & Associates Inc. was named as trustee in the proposal. On February 12, 2014, the proposal failed because it did not receive requisite creditor approval. As a result, the company was deemed bankrupt, and the company's assets will be liquidated. (link to Stockwatch.com)

(In 2007 Andover Mining Corp. had also purchased potential mining properties in northern Alaska, near the town of Ambler, Alaska. The company had built a camp and a 1,700-feet landing strip, since air was the only access to the property.)

More Information

###