Can a new owner make a go of it at the Dufferin gold mine?

Can a new owner make a go of it at the Dufferin gold mine?

B.C. junior miner revives shuttered Nova Scotia operation

THE DUFFERIN MINE, idled in 2014 when its former owner went bankrupt, is producing gold once again.

The underground mine, located about 135 kilometres northeast of Halifax, Nova Scotia has had a troubled history. It was put into receivership in 2015 after its previous owner Ressources Appalaches defaulted on $11 million in loans. Vancouver-based Resource Capital Gold Corp. bought the mine in the fall of 2016 for US$9.5 million and a royalty on the mine’s production.

Since then the company has been working to get the mine into production. It reached one milestone in March when it produced gold from a 15-tonne run of test milling of materials stockpiled near the mill. In April it filed a preliminary economic assessment of the Dufferin project that shows the mine could churn out 216,050 ounces of gold over its 10-year mine life. The assessment also shows the capital costs of the project will be paid back in 1.3 years.

The company, led by CEO George Young, added some needed cash to help fund the Dufferin mine when it sold its interests in the Corcoran silver-gold project in Nevada to a private Australian company for $2.7 million and shares in the company, which must go public as part of the deal. In a March press release announcing the transaction, Resource Capital Gold Corp. said the deal would “generate working capital as the company commences production at the Dufferin project and continues its other developments in Nova Scotia.”

The company says it is on track to start full mining operations at Dufferin by this summer, and Young has said the sale of the Corcoran project will give it the cash to re-start mining at Dufferin without incurring any debt. “We are excited to be completing the final steps of pre-production and to be in a position now to commence full-time production,” Young said in an April 18 press release.

Leave a comment

Your email address will not be published.


*


ADVERTISEMENT