Tailings treatment project has yet to reach output target

Last October ERG officially opened the project, which is expected to operate for 17 years. The company plans to treat more than 200 million tons of tailings deposited throughout the old Timmins gold camp.

At the time of the opening, the company, controlled by Pamour Inc., was forecasting recovery of 110,000 oz in the first full year of production.

After closing for the winter, the project was started up again last April. Tailings are currently being reclaimed from three different sites, each with varying grades.

President Adrian Fleming reports changes are being made to the reclaim pumping configuration to provide a different mix of feed grades to enhance gold output.

Mill throughput of tailings achieved the target of an average 40,000 tons per day in June, Fleming reports.

The flotation circuit has shown a progressive improvement in the rate of gold recovery since its mid-April start-up. But Fleming says the project has yet to reach the percentage recovery which the pilot tests indicated was achievable. In June, flotation recovery was 65% of target and in July, 85%.

Further changes are being made to the grinding circuit which Fleming hopes will achieve the fine grind required for optimum gold recoveries in the leach circuit.

Fleming says ERG’s gold loan lender, an Australian bank, has consented to defer all repayments of the loan due to date. Discussions continue with the lender to reschedule the remaining payments.

The company has deferred an equity share issue which would assist in the repayment of construction borrowings because the project has not reached commercial production and because of current market conditions.

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