Northfield pours Cheminis mine’s first gold output

The Cheminis mine of Northfield Minerals (ASE) near Virginiatown, Ont., yielded its first two gold bars recently, after stockpiled material from above the 695-ft. level was processed through the nearby Kerr mill.

One of four deposits in the Larder Lake region, west of the Kerr gold mine, Cheminis is being operated under an agreement between Dynatec Mining and Northfield Capital, each of which own 29% of Northfield Minerals. “It’s a great relief to see the first gold after five years of trying to get the project into production,” said Northfield President Thomas Pladsen, who estimated that about $13 million has been spent during that period. Northfield owns 78.5% of the Cheminis project which hosts proven and probable reserves of 297,000 tons grading 0.15 oz. gold per ton, plus an additional 2.4 million tons grading 0.17 oz. of possible ore. The remaining 21.5% is held by Northfield’s 40% owned affiliate Towerlands Properties. Having recovered 1,200 oz. since mining operations began in July, Northfield is confident that Cheminis can consistently produce 10,000-15,000 tons per month at a cost of just under US$300 per oz.

With 45 employees on site, the mine is now running on schedule and on budget with three shifts per day. The next gold pour is expected in December. While proven and probable reserves are sufficient for four years of production, Northfield is moving to develop new ore in the North Carbonate zone by drifting north on the 1,000-ft. level. To finance development of the North Carbonate and mineralization below 1,000 ft., Northfield is negotiating to raise $500,000 through a private placement with a New York group. Northfield has an open-ended custom-milling deal with Deak Resources (TSE) which now owns the Kerr mine and mill. Northfield’s 18 million issued shares traded recently at 75 cents.