MANITOBA – Auriga Gold of Toronto has signed a service agreement with Manitoba Hydro to provide electric grid power to Auriga’s Maverick gold project near Flin Flon. The cost of the sub-station and running the power line from Sherridon to the mine site is $1.1 million. Power is to be restored in September 2012.
The Maverick project includes the past-producing Puffy Lake mine and the adjacent Nokomis property. Last year, Auriga prepared a 43-101 report for Puffy Lake that put indicated underground and open pit resources at 944,000 tonnes at 4.73 g/t Au, plus inferred resources at 3.1 million tonnes at 5.61 g/t Au. Refurbishing the existing Puffy Lake mill and infrastructure, as well as pit development, will cost approximately $15.6 million. The Nokomis property is located contiguous with and to the northeast of the Puffy Lake property.
The Puffy Lake preliminary economic assessment is posted at AurigaGold.ca.