Sandstorm has a gold stream agreement to purchase 20% of the life of mine gold produced from Bachelor Lake at a per ounce price of US$500.
Quebec gold miner eyes commercial production, production rises
TORONTO (miningweekly.com) – Canadian junior Metanor Resources on Tuesday said it has increased gold production at its Bachelor Lake project, in the Le Sueur Township about 225 km north-east of Val d’Or, Québec, by 464 oz in November to 1 715 oz as it ramps up to achieve commercial production.
The company said this compared with October production of 1 251 oz in October, bringing total gold production since the end of July to 6 157 oz.
Metanor said the increased production is a result of production activities on level 12 and 13 of the mine during November.
The company added it expected to simultaneously continue to increase production while it constructs required infrastructure to ramp up towards commercial production, which it expects to achieve during the spring of 2013.
Metanor in November completed the excavation and construction of a 625 m second passageway to the surface, as is required by provincial legislation. With this complete, the company expects to proceed with the next phase of the mine development, which entails production activities in the stopes and increased monthly production.
Further, Metanor said Ressource Quebec, a subsidiary of Investissement Quebec, has agreed that the company begin repaying its $7-million loan from February 28, 2013, three months later then what was provided for.
Bachelor Lake project, comprising the Bachelor and the Hewfran deposits, has a total proven and probable reserve of 843 772 t grading 7.38 g/t for 200 177 oz of contained gold. A further 210 857 oz is currently classified in the measured and indicated resource category.
The company’s TSX-Venture-listed stock traded at 21 Canadian cents apiece on Tuesday afternoon.