In keeping with its plans to make the Mt. Nansen mine near Carmacks, Y.T., a central milling operation, BYG Natural Resources (BYG-T) has concluded a joint-venture agreement with YGC Resources (YGC-V) to develop the Ketza River mine, 100 km southeast of Faro.
Under the terms of the agreement, BYG will carry preproduction and capital costs. YGC will transfer ownership of mill equipment from the mothballed Ketza River mill to BYG, which has already moved some machinery to Mt.
Nansen. Production could start as soon as the last quarter of this year, if permits are available.
With feed from Ketza River, throughput at the Mt. Nansen mill is expected to increase to 1,000 tonnes per day. Mt. Nansen is currently operating at a daily rate of 300 tonnes, a limit imposed by the Mt. Nansen mine’s clay-rich ore. The Ketza feed is expected to allow for higher grinding rates.
Ketza’s reserves stand at 230,000 tonnes grading 10.9 grams gold per tonne, in both oxide and sulphide forms. Ketza was in production from 1988 to 1990, during which time it produced 100,000 oz. gold. It is situated about 300 km by road from Mt. Nansen.
Exploration work will shortly be under way at Ketza River, where YGC plans to outline additional reserves by means of drilling.
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