Coxheath Gold mine to resume production

Shareholders were told at Coxheath’s annual meeting in Halifax that projected gold production for the mine’s first 12 months of operation is 24,000 oz at a 90% recovery rate. Estimated milling grade is 0.35 oz per ton.

The milling problems have resulted in a large short-term debt position for the company that has hurt operations. Although the resumed production will partly offset the debt, Coxheath is looking for additional financing.

Last March production was curtailed because the mill was recovering less than 20% of the contained gold. The mill modifications will allow it to increase production to 200 tons per day beginning with a surface stockpile of 5,000 tons grading 0.22 oz. When more underground ore becomes available, the mill will process 250 tons per day. The operations are situated 85 km northeast of Halifax.

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