President Mario Caron says the directors of MSV have agreed to arra nge the financing for the project, 190 miles northeast of Chibougamau, near James Bay.
The estimated $40 million capital cost excludes working capital and warehouse inventory, Caron says.
The property recently underwent a feasibility study by independent engineering consultant ADM/ Roche. The study estimated total proven and probable reserves of 952,000 tons grading 0.35 oz gold per ton, enough for a 5-year mine life.
Allowing for recovery and dilution, annual production is estimated to be 56,000 oz. The average operating cost is estimated to be $250(US) per oz.
Caron says the company will apply for government grants available for infrastructure development, in particular for the construction of an access road.
Preliminary discussions concerning financing have taken place with several interested partners, he said. MSV hopes to begin pre-production activity this autumn.
MSV recently bought out the 51% interest of project partner Placer Dome (TSE) to become sole owner of the Eastmain property. The junior struck a financing agreement with Northgate Exploration (TSE) which allowed MSV to conclude its deal with Placer Dome.
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