TORONTO (miningweekly.com) – Junior gold producer Klondex Mines expects to make a development decision on its recently acquired True North gold mine, formerly known as the Rice Lake mine, in Manitoba, following a mineral resource update expected in the third quarter.
The TSX-listed miner advised that it expected to recover between 8 000 oz and 12 000 oz of gold from the project this year as it conducted test stope mining and a tailings reprocessing project that had already started.
Vancouver-based Klondex said it was busy running an infill core drilling campaign in the 710/711 zones, and two long hole test stopes had been completed in the Cohiba zone. Bulk sample mining in the 710 zone was expected to start in July.
CEO Paul Huet noted that the project development progress continued to be on budget and on schedule, adding that the tailings reprocessing project through the existing mill was another “tremendous opportunity” for value creation.
Klondex in January acquired the Rice Lake mine and mill, located near Bissett, Manitoba, for $32-million. The acquisition represented an important opportunity to strategically grow its business in a mining-friendly jurisdiction, while leveraging its technical expertise in narrow-vein underground mining.
The company had 100% interests in two Nevada-based producing gold mines – the Fire Creek mine and the Midas mine and mill.
Klondex’s TSX-listed stock had appreciated 65% so far this year, closing up 3.78% at C$4.67 apiece on Wednesday.