J.T. Flanagan, president of Muscocho Explorations (TSE), says efforts are continuing to secure alternative financial arrangements following the collapse of an earlier agreement with Echo Bay Mines which was not completed. That deal would have seen Echo Bay refinance the Muscocho group of juniors as part of a property/share swap agreement. Flanagan says other interested parties have now been contacted and are reviewing the Muscocho group’s operations and assets.
Monthly production statistics for the Magnacon and Magino gold mines have also been released recently by joint owners Muscocho, McNellen Resources (TSE) and Flanagan McAdam Resources (TSE). The two underground gold mines are near the town of Wawa in northern Ontario.
Last month’s gold output at the Magnacon mine was 2,398 oz., with mill recovery averaging 89.5% at an operating rate of 645 tons per day. The Magnacon mine is 50% owned by Flanagan McAdam with Muscocho and Windarra Minerals (TSE), each holding a 25% interest.
At the Magino mine, owned 50% by Muscocho and 50% by McNellen, gold production for May totalled 2,536 oz. The mill operated at an average daily rate of 539 tons per day with recovery averaging 92%.
The mines are currently being operated with the support of the Muscocho group’s main secured creditor.
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