Northern Gold Mining Inc. has signed a custom milling agreement with St. Andrew Goldfields Ltd.
The agreement provides for the milling of a minimum of 80,000-tonne bulk sample from the company’s Garrcon deposit, located on its Garrison Property located east of Timmins. The term of the agreement is approximately nine months.
The company will be mining under a mine production closure plan that provides for the processing of a bulk sample of up to 150,000 tonnes. Stockpiling of material has already begun and processing of the initial batch of 8,000 tonnes is expected to begin immediately.
The goal of the bulk sampling is to provide real-world mining, milling, metallurgical and recovery data, as well as costing, in support of the development of the Garrcon open pit mine/mill. Funding for the bulk sample program is being provided via a secured debt facility provided by a third-party lender. Proceeds from the gold credits will be used to pay down this secured debt facility in full within the next 12 months.
“This is the latest milestone in the development of the Garrcon open pit mine, our most advanced of several deposits that the company is developing,” said president and CEO Eric Moeller in a statement.
“I want to thank our partners, Wahgoshig First Nation, Asinii Drilling, LPL Contracting, St. Andrew Goldfields, Ltd. and many others, as well as our dedicated workforce for their efforts in achieving this milestone. With a resource of more than 2 million ounces of gold on the Garrison property, and more exploration opportunity at depth and to the west on the property, the company is working hard to create Canada’s next new gold mine.”
