A quick look at Atlantic Gold & Moose River Consolidated Project
This week saw Atlantic Gold move one step closer from being able to jumpstart construction of its Nova Scotia mining operation in Moose River.
So let’s take a look in a little more detail at what Moose River Consolidated Project really is.
- Atlantic Gold are a Canadian gold development company with four development projects in Nova Scotia, Canada: the aforementioned Moose River Consolidated Project which comprises of the Touquoy and Beaver Dam gold deposits, the Cochrane Hill gold deposit, and the Fifteen Mile Stream deposit.
- The Moose River Consolidated Project has been given a projected full production start date in 2017.
- Gold production at the mine has been estimated at 87,000 ounces per year
- Atlantic Gold struck a deal with Macquarie Bank and Caterpillar Financial Services Corp to finance the construction costs of the Moose River Project. This deal includes an agreement to sell 215,000 ounces of gold back to Macquarie over the next five years.
- The company announced that it has satisfied the majority of CPs to make the first draw out of its $115 million project loan from the two partnering companies. The remaining CPs needed to be satisfied are expected to do so by the end of August, with the first anticipated drawdown of the loan to be made in September.
- During construction, Atlantic Gold will employ up to 300 workers, both employees and contractors
- The company first released a Preliminary Economic Analysis (PEA) back in 2014
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.