SASKATCHEWAN – GLR RESOURCES of Kirkland Lake, Ont., has been granted approval to proceed with the development of its Goldfields project near Uranium City. The project includes the former underground Box gold mine (1939-42) and the Athona gold deposit (1935). The company has plans for open pit mining and gold production to begin in 2009.
The Box pit will have a life of 10 years, producing 90,000 oz/yr from a 5,000-t/d operation. In all resource categories, the deposit is believed to contain 925,000 oz of gold. Mine life could be extended three years by mining the Athona deposit, which contains perhaps 339,000 oz of gold. Work is underway to complete a pre-feasibility study at Athona. Both deposits are open at depth.
GLR estimated the capital cost at US$65 million, including a US$19-million contingency fund. The largest chunks of the budget will be spent on mining and support equipment (US$11 million) and the processing plant ($19.1 million).
Photos are available at www.GLRResources.com.