Going Into Gold Production by Year End
Nigel Lees, President & CEO of Sage Gold, discusses this company with a gold deposit in one of the most prolific gold mining areas.
We primarily focus on gold. Our primary project is the Clavos gold deposit in Timmins, Ontario. And as most people know, Timmins is one of the most prolific gold mining areas in the world. We had the benefit of acquiring the property from the previous owner; they spent over $60 million dollars. Tremendous amount of infrastructure and information. So that our cap-ex, to put it back in production is only $7.25 million.
I think that what’s really unique is that we’re one of the few gold deposits in Canada that is permitted, and the time to go into production is a very short one. We started de-watering in January, and we should be in production this year.
The great thing, we’re permitted to do 700 tons a day. Plan is, we’ll be doing about 600 tons a day. It’s a deposit with about 320,000 ounces. We’ll be mining over about a seven-year period, about 146,000 ounces. Average grade is just under five grams.
I’m optimistic of where we’re in terms of we’re on budget, we’re on time, putting Clavos back in production. We should be producing ore this year and we expect a very profitable operation.
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