Ontario’s newest producing gold mine could be the Holloway project, 60 km east of Matheson.
A feasibility study by Hemlo Gold Mines (TSE), Freewest (TSE) and Teddy Bear Valley Mines (CDN) indicates that a 1,250-tonne-per-day underground mine can be constructed and developed over two years at a cost of $55 million. A mill will not be built, as was first proposed; instead, ore will be custom-milled at an existing plant nearby.
The deposit contains 2.1 million tonnes averaging 7.68 grams gold per tonne in the proven category and 3.8 million tonnes averaging 6.22 grams gold probable. Minable reserves are therefore about 5.9 million tonnes grading 6.75 grams gold.
The mine has enough reserves for 13 years of production and the deposit remains open at depth.
Construction is to begin after milling arrangements have been completed. Once in operation, the mine is expected to employ 130 people and produce 100,000 oz. gold per year.
Exploration and development was partly funded by the Ontario government. Since 1980, it has provided more than $1.2 million, including $750,000 through the Ontario Mineral Incentives Program.
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