GEODOME <GOEDF> TO START MINE CONSTRUCTION Geodome Resources Ltd said following receipt of a feasibility study from Raytheon Co's <RTN> Stearns Catalytic unit, it will proceed with construction and pre-production stripping at its Sunbeam Mine in Custer County, Idaho, as quickly as possible. The company said the study found proven ore reserves of 3,302,000 short tons grading 0.077 ounce of gold per ton. It said the mine will operate at a rate of 626,000 tons of ore per year, with higher-grade ore being mined in the first three years for a rapid payback of capital costs. The company said the feasibility study calls for gold production averaging 41,000 ounces a year for the life of the mine and 50,000 ounces a year over the first three years, with 99,000 ounces of silver per year being produced over the miune life. Capital costs would be 22.3 mln dlrs with all-new equipment and 500,000 to one mln dlrs less with used equipment, it said. It said the mine would be operated by a contract miner but the associated mill by Geodome. Geodome said a new ore zone discovered last summer is not included in reserve calculations. It said eight of the nine holes drilled there have an average grade of 0.046 ounce of gold and 2.1 ounces of silver per ton. Also excluded are reserves of 1,400,000 tons of low-grade material that could be milled profitably at 425 dlrs a ton for gold. The feasibility study used a 350 dlr gold price. Geodome said operating costs of the mine will average 201 dlr per ounce of gold for the mine life and 171 dlrs for the first three years, in constant dollars.