Monk Gold and Resources (ASE) plans to have the Surluga mill near Wawa, Ont., up and running sometime this spring after reaching a lease-to-purchase agreement with owner Citadel Gold Mines (TSE).
The Surluga mine and mill were both closed at the end of 1989, after producing less than 5,000 oz. gold. The mill has a capacity of 500 tons per day.
Although details of the leasing agreement remain confidential, Monk President William Monk says the Surluga site will function as a custom milling facility for the area’s small gold deposits.
He says some of the ore will be shipped from Monk’s nearby gold prospect, where proven reserves stand at about 50,000 tons. Other companies, including Van Ollie Explorations (CDN), owner of the nearby Van Sickle deposit, have expressed an interest in providing custom ore.
“I think it is fair to suggest that at least 35-40 local people will initially receive employment from this project and the potential will be completely
dependent on how many area exploration projects use the facility,” said Bryan Brown, manager of the Wawa Economic Development Corp.
At any time during the next two years, Monk will have the right to buy the mill outright.
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