Between Evolution Mining’s investment in the Red Lake mine, Great Bear Resources’ exploration success at Dixie, Pure Gold Mining opening up a second mine in the camp, and Battle North Gold planning a third – Red Lake is seeing renewed interest.
Evolution Mining made its entrance into Red Lake, Ont., only last year, after striking a deal with Newmont for the historic Red Lake gold complex in late 2019. The complex has a long and prolific history, with production of more than 25 million oz. at grades of over 20 g/t gold since the late 1940s.
Once the crown jewel in Goldcorp’s portfolio, the mine suffered from underinvestment and declining grades and resources in recent years. But, in line with its strategy of acquiring assets with long life potential in “well-endowed geological terranes,” Evolution saw the opportunity to turn it into a cornerstone asset, while restoring Red Lake to some of its former glory.
It paid Newmont US$375 million for the mine upfront, with another US$100 million contingent on new discoveries.
Over a first-phase, three-year plan, the Australian miner plans to increase production to 200,000 oz. gold annually at all-in sustaining costs (AISC) of less than US$1,000 per oz. To do so, it committed to spending US$50 million in exploration on drilling of over 100,000 metres per year to grow resources and reserves.
For the rest of this article: https://www.canadianminingjournal.com/features/rediscovering-red-lake/