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THE ownership of two of the most promising mineral-exploration projects in the province continue to lay the groundwork for what they hope will eventually become producing mines.
Mega Precious Metals Inc. announced a 5,000-metre winter drill program at its Monument Bay gold and tungsten project, located about 60 kilometres northwest of Red Sucker Lake in northeastern Manitoba.
A company spokesperson said the exact capital investment in the program is not known but said this year’s drilling program is fully funded. The Thunder Bay-based company has about $4 million in its bank account.
The company has been laying the groundwork for a preliminary economic assessment of its gold deposit that currently sits at 2.1 million ounces measured and inferred.
Mega has a funding arrangement with Pacific Road Capital out of Australia. When milestones are met and both sides agree to the disbursements, the company could have as much as $40 million at its disposal. But with Mega’s current share price down at five cents, it’s likely too dilutive and not the right time for the next tranche from Pacific Road.
Farther west in northern Manitoba, Carlisle Goldfields is a little further along in the redevelopment of its gold mines near Lynn Lake, about 740 kilometres northwest of Winnipeg.
Late last year, Carlisle entered into a significant development agreement with AuRico Gold Inc. AuRico will spend $9 million this year producing a feasibility study on the MacLellan and Farley Lake mines in the Lynn Lake region. Carlisle and AuRico will spend an additional $2 million each on exploration in the region this year.
Both companies are going the extra mile in creating strong ties with First Nation partners. Mega has had a rocky relationship with Red Sucker Lake First Nation, but last year it renewed its memorandum of understanding with the new chief and council.
In partnership with AuRico, Carlisle announced Monday it signed a comprehensive exploration agreement with Marcel Colomb First Nation and its development corporation.
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