A financing for ERG Resources (TSE) big tailings recovery project near Timmins, Ont., has been arranged. A $41 million gold loan has been provided by Westpac Banking Corp., based in Australia. Pamour Inc. (TSE), which owns a 61.6% interest in ERG, has also advanced a $41 million loan to the company.
The Westpac gold loan is guaranteed by Pamour’s Australian parent, Giant Resources. Also, ERG is planning an equity issue next year which is expected to retire $21 million of debt.
In Timmins, ERG has completed construction of the mill and tailings retention areas. Processing of several tailings reclaim sites is under way with the objective of building up to design levels. The project is designed to operate during warm months and to shut down during winter. Production of gold in 1988 will depend on the severity of climatic conditions, ERG says.
When in full production, ERG’s tailings recovery project is expected to produce 53,700 oz of gold per year during the operation’s 17-year life. Total reserves controlled by ERG in the Timmins camp are 170 million tonnes grading 0.432 g gold per tonne (0.0126 oz gold per ton).
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