Picking up the Clavos Mine near Timmins has been about as turn-key as a mining project gets for Sage Gold. Things have fallen nicely into place for the Toronto developer as the company transitions from being a pure exploration player to becoming a mine operator in one of the world’s richest gold camps by early next year.
The Clavos Gold Project, 32 kilometres northeast of the city, was one of the few fully permitted mines in Canada that was sitting in mothballs in the East Timmins gold camp. Sage completed its phased-in acquisition of the former St. Andrew Goldfields mine last fall and had the provincial government reactivate the mine’s production permit.
With a private equity partner on its side, the company raised $11.5 million last November, and has raised a few million more since then. A good chunk is devoted to refurbishing the portal-and-ramp mine with the aim of restarting commercial production by the second quarter of 2018.
A preliminary economic assessment completed in 2013 had Clavos producing more than 145,000 ounces over seven years, numbers that are sure to change come fall with a large exploration program underway.
Dewatering the mine began in January with that process, down to the 300-metre level, expected to be done by year’s end. Bill Love, Sage’s vice-president of business development, said they’ve been very fortunate that there’s very little rehabilitation work to do.