PFS Supports Expansion of Atlantic’s Moose River Project

Ore mined from two new pits will be trucked to the Touqouy plant (above) in Nova
Atlantic Gold has reported the results of a prefeasibility study (PFS) of a proposed expansion of its Moose River Consolidated gold project in Nova Scotia, Canada. Production at Moose River started in October 2017 based on mining the project’s Touquoy and Beaver Dam deposits and processing the mined material through a plant at the Touquoy site. Initial design called for production of 87,000 ounces per year (oz/y) of gold in doré over a mine life of 8.5 years.

Expanded production would be based on open-pit mining of the 15 Mile Stream and Cochrane Hill deposits, located 57 kilometers (km) and 80 km, respectively, from the Touquoy plant. Gravity and flotation concentrates produced at these sites would be trucked to an expanded Touquoy plant for final processing.

Gold production would peak at more than 200,000 oz/y for a three-year period from 2022 to 2024. All-in sustaining cash costs of production are estimated at C$692/oz. Pre-production capital requirements for the expansion are estimated at C$259 million: C$123 million for 15 Mile Stream and C$136 million for Cochrane Hill. Pre-production costs include contingency, owner’s costs, EPC costs, new mine equipment and infrastructure. Modifications required at Touquoy to treat the gravity and flotation concentrates from 15 Mile Stream and Cochrane Hill are estimated at C$4.3 million, and this amount is included in the estimated capital costs for 15 Mile Stream.

Initial proven and probable reserves stand at 432,000 oz in 10.8 million metric tons (mt) grading 1.24 grams (g) per mt for 15 Mile Stream and 393,000 oz in 11.16 million mt grading 1.10 g/mt for Cochrane Hill. Given the robust results of the PFS, Atlantic is proposing development of both deposits, including submission of Environmental Impact Statements in the second half of 2018.

As featured in Womp 2018 Vol 03 -