ONTARIO — Work is underway for the reopening of the Holloway gold mine later this year and the Holt gold mine next year. The mines are owned by St Andrew Goldfields of Toronto, and both former producers are located about 60 km north of Kirkland Lake.
For the Holloway mine, St Andrew renegotiated the net smelter royalty to 4% from 7% and raised $19.5 million in May 2009. The mine has been taken off care-and-maintenance and pre-production activities are advancing. These activities include creating a backfill system, stope development, surface and underground equipment rehabilitation, infrastructure improvements and the hiring of employees. The mill is also receiving an upgrade including a control system, cleaning and testing of all mill motors, bearing and alignment testing, and repair of the electrical components of the refinery furnace. All the work is to be completed by the end of September.
St Andrew hopes to reopen the nearby Holt mine in the second half of 2010, but the company is still evaluating the economics and its plans. If the Holt reopening receives the green light, the company will have to determine the best means of financing the work.
The June 2008 resource estimate for the Holloway-Holt project included measured and indicated resources of 4.2 million tonnes grading roughly 6.7 g/t Au plus an inferred resource of 1.5 million grading 7.3 g/t Au. Included in these tonnages are proven and probable reserves of 3.4 million tonnes averaging 6.6 g/t in the proven category and 5.6 g/t in the probable category.
Read the latest news about the Holloway-Holt project at www.StAndrewGoldfields.com.