LEAD - With gold prices hitting $1,000 per ounce, planners at the Wharf Resources Gold Mine near Terry Peak are looking for more gold-bearing ore within their 1,500-acre mining boundary.

If prospects prove feasible enough to make a profit, mine officials predict surface mining operations could extend into 2012. The information was relayed to Lawrence County commissioners last week during an annual review of the mine's county-level permits.

Jim Lessard, Wharf's land manager, said the 57,000 ounces of gold harvested from the Lead-area rock formations were bolstered by favorable market conditions.

Mine officials have set a goal of pouring out 63,000 ounces of gold in 2008.

"We are experiencing world-record gold prices," Lessard said. "We are looking to extend the mine life beyond 2010, but that relies upon high gold prices."

Some areas once deemed too costly to mine are now getting a second look from geologists and mine engineers.

With the increased activity, Wharf has increased its employee pool to more than 150 workers. Leach pads have been added to increase the volume of gold extraction. A new pit has been opened behind the area occupied by the Trojan Schoolhouse.

Wharf's parent company also owns the defunct Golden Reward Mine near Terry Peak. It has been reclaimed, and owners will seek redemption of its $1.5 million reclamation bond from the State of South Dakota. This action would close the mine permit at that site. Wharf staffers would monitor water wells on the site for the next 30 years, Lessard said.

Golden Reward will transfer ownership of the Terry Cemetery to the Terry Cemetery Association this year, as part of the official closure proceedings.

Terry Peak Ski Area uses some of the purified water on the site for snow-making in the winter months.