The Hardrock project, a joint venture (JV) between Centerra Gold and Premier Gold in Ontario, has gained environmental approval from the federal government, marking a significant milestone for the proposed 288 000 oz/y gold project.
The multi-million ounce gold mining project, as proposed by joint venture company Greenstone Gold Mines (GGM), consists of the construction, operation, decommissioning, and abandonment of an openpit and onsite metal mill near Geraldton.
The environmental approval by Minister of Environment and Climate change Catherine McKenna follows an environmental assessment conducted by the Canadian Environmental Assessment Agency with the participation of indigenous groups, the public, and federal departments including Fisheries and Oceans Canada, Environment and Climate Change Canada, Health Canada, and Natural Resources Canada. Participating provincial Ministries included the Ministry of the Environment, Conservation and Parks, the Ministry of Natural Resources and Forestry, and the Ministry of Energy, Northern Development and Mines.
"The Ministers' approval of the environmental approval is a significant milestone for the Hardrock project. Our engagement with representatives of the local ondigenous communities, local communities and the various government agencies has been very positive throughout the process and we look forward to continued advancement of the project,” Premier executive chairperson John Begeman said in a statement.
The provincial Ministry environmental approval review report was issued for public comment on October 22, and approval is anticipated in the first quarter of 2019.
Premier reported that work on construction permit applications were well advanced and would be submitted for review once the federal environmental assessment and provincial environmental assessments were approved.
The company also said that a definitive agreement with Long Lake #58 First Nation had been signed earlier in 2018 that that GGM was negotiating agreements with the other local Indigenous communities.
GGM has engaged financial advisers to begin the process of identifying the various financing options that may be available for the Hardrock project.
According to a 2016 feasibility study, the C$1.25-billion project is expected to process 141.7-milliont onnes at an average grade of 1.02 g/t, producing 4.2-million ounces of recovered gold at atn average all-in-sustaining cost of $780/oz over its 14.5-year mine life.
The study calculated an after-tax net present value, at a 5% discount rate, of C$709-million and an after-tax 14.4% internal rate of return on a pre-finance basis.