Golden Goose ponders Magino options

Location matters in the mining industry, which explains why management of Golden Goose Resources (GGR-V) is tracking the pending closure of the Hemlo gold mines in Ontario.

The company’s Magino gold project is near a rail line that passes the nearby Hemlo gold camp. With one of the major Hemlo mines slated for closure in the next two years, Golden Goose is exploring the possibility that Magino’s existing resource could be mined and transported a short distance by rail to the Hemlo mills for processing.

Golden Goose President Irwin Miller does not have such a deal on his desk yet, but he is keen to consider any proposal that might lead to the revival of the Magino mine project.

Golden Goose’s Magino project saw limited production in the late 1980s through to the early 1990s. Accounting for past production, the remaining resource consists of 5.8 million tons grading 0.09 oz. gold per ton, based on a 0.05-oz.-per-tonne cutoff grade. Open-pit mining is envisioned.

Golden Goose is also encouraged by developments at the nearby Island Gold property, which is being explored by Richmont Mines (RIC-T). The major gold structure hosting Magino also hosts the Island Gold property, as well as the nearby Edwards and Cline mines.

Richmont recently launched a $2.5-million program on the Island Gold property, which includes surface drilling, dewatering of the Lochalsh drift, underground drilling, and lateral and vertical underground infrastructure.

Richmont can acquire a 55% interest in the project by spending up to $10 million over two years in order to bring the mine into commercial production.

The existing infrastructure includes a mill capable of processing 650 tons per day, a 2,400-ft. ramp, and drifts and raises on two levels to provide access to the main gold zone. A previous operator estimated a gold resource of 2.2 million tons grading 0.24 oz. gold per ton. The zones are open laterally and at depth.

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