Ontario snapshot: 4 gold projects nearing production – by Salma Tarikh (Northern Miner – May 16, 2017)


Ontario is a hot spot for gold exploration in Canada, as it hosts several of the country’s large historic gold camps. According to Fraser Institute’s annual Survey of Mining Companies 2016, Ontario ranked as the sixth best jurisdiction for investment attractiveness in Canada and globally came in 18th place. Here’s a review of four gold projects in Ontario set to start production within the next two years:

1. Clavos

Sage Gold (TSXV: SGX) is eyeing pouring first gold at its 100%-owned Clavos gold deposit in Timmins, Ont., by the end of 2017. Last November, Sage completed an $11.5 million financing package with Cartesian Royalty Holdings (CRH) to further explore and develop the past-producing deposit with an aim of entering commercial production by early 2018.

That financing package included a $1.85 million equity injection and a $9.65 million gold prepayment facility, where CRH could buy 15% of Clavos’ future gold output.

Sage used $1 million of the net proceeds to pick up Clavos’ remaining 40% interest from St Andrew Goldfields. It also drew down the first tranche of the gold prepayment facility totaling $4.39 million to repay $2.4 million in debt and fund the ongoing dewatering and rehabilitation at Clavos.

s of October 2012, the project had 1.26 million indicated tonnes of 4.81 grams gold for 194,600 oz. gold, plus 796,000 inferred tonnes of 4.7 grams gold for 120,000 oz. An April 2013 preliminary economic assessment (PEA) outlines Clavos could produce a total of 145,448 oz. over 7 years. Estimated total capital is $35 million, including $8 million in start-up costs.

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