Abcourt Mines’ current production enough until commercial production
TORONTO (miningweekly.com) – Junior project developer Abcourt Mines on Monday said the value of gold-bearing ore stored at its flagship Elder gold mine, in north-western Quebec, would be enough to see the project through to commercial production by the end of the year, pending the conclusion of a custom milling agreement with a nearby mill.
President and CEO Renaud Hinse said the mine now had four stopes in production, while two stopes were being rehabilitated. The stockpiled ore represented a recoverable value of about C$1.5-million, based on a price of $1 200/oz and at the current US dollar/Canadian dollar exchange rate.
He added that the company had about $3.6-million in the bank as at March 31, which, together with the near-term sale of gold recovered from the stockpiled ore, would keep the company going for several months and enable it to reach commercial production near the end of the year.
The mine was operating at half capacity, on one shift, with about 40 employees.
Abcourt said three operating mines in the area had expressed an interest in custom milling its ore, and it expected to receive a proposal soon.
Further, the company also appointed mine engineer Charles Belanger, who would be responsible for technical services in mining and mine geology, and to assist the mine manager.
The preliminary economic assessment completed in November 2012 indicated a breakeven price of $780/oz for gold, and if the price of gold dropped to that level, Hinse said he believed the company could manage to “somehow” reduce costs.
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