MANITOBA – Klondex Mines of Vancouver has made a positive production decision for its True North gold project near Bissett, 250 km northeast of Winnipeg. Klondex bought the property (formerly known as the Rice Lake complex) in January 2016.
Klondex has laid out the operating parameters for the reopened producer at a milling rate of 600 to 1,000 t/d and annual production between 45,000 and 65,000 oz of gold. The company spends to make yearly capital expenditures of between $15 million and $25 million. The project will have an average all-in sustaining cost of C$950 to C$1,050 per oz.
The company has also updated the reserves and resource at True North. Proven and probable reserves at 352,000 tonnes averaging 8.33 g/t Au and containing 85,500 oz. Measured and indicated resources are 1.39 million tonnes averaging 7.27 g/t Au and containing 294,000 oz. The inferred resource is 2.79 million tonnes averaging 5.66 g/t Au and containing 460,000 oz.
Klondex president and CEO Paul Huet stated, “I am very pleased to have been able to deliver a positive production decision on our True North asset ahead of our initial expected timeframe. This will be our third operational mine and we believe it will deliver significant value to our shareholders.”
More information as it becomes available will be posted at www.KlondexMines.com.