Great article about the latest news at the dufferin mine in the local newspaper...


The Dufferin gold mine near Port Dufferin on Nova Scotia’s Eastern Shore has been cleared for drainage.

Rimouski-based mine owner Ressources Appalaches Inc. announced Monday that the provincial Environment Department has given it the green light to “dewater” the moribund mine as part of its plan to return it to production.

“This latest accomplishment is very significant,” said company president and CEO Alain Hupe in a news release.

Ressources Appalaches has completed several preliminary steps in advance of drainage, including rehabilitating the mine’s tailings facility, purchasing underground equipment and hiring qualified personnel.

The Quebec company plans to do sampling and underground mapping once the mine has been drained and its galleries have been rehabilitated.

It said it will also continue with general refurbishment work and underground drilling.

Ressources Appalaches has also initiated the provincial industrial approval process required to resume mining production and to restart its mill.

Executive vice-president Jean-Claude Morel said in an interview from Rimouski on Monday that it would take 45 days to complete the industrial approval application, which would take the province about 60 days to process.

“It’s a major issue,” he said.

The company said recently it would continue with its plans to reopen the mine in late 2012 or early 2013 despite having an $8.5-million loan deal fall through with Renvest Mercantile Bancorp Inc.

Morel said those startup projections remain realistic, depending on financing, which is in the works.

“We have been solicited by other institutions and groups,” he said, calling those talks “preliminary discussions.”

Morel said the company is looking for financing on the order of the failed deal with Renvest.

The mine is expected to produce 20,000 to 25,000 ounces of gold in its first year of production and employ about 50 people when fully operational.