Mill being built at Nugget Pond

A mill is being constructed at the Nugget Pond property at Baie Verte, Nfld.

Owner Richmont Mines (RIC-T) expects to reach production in March, thereby boosting its total gold output from Canadian operations to more than 90,000 oz. annually.

The carbon-in-pulp mill at Nugget Pond will have a daily capacity of 400 tonnes and produce 46,000 oz. Yearly cash flow of $20 million is projected.

Cash operating costs are estimated to be US$153 per oz., making the project one of lowest-cost gold mines in Canada.

The mine will also produce 90 full-time jobs in an area of high unemployment.

The deposit has a cut, diluted, proven and probable reserve of 400,000 tons grading 0.4 oz. gold per ton. This reserve is accessible by a ramp, which has been driven for 70% of its required length.

Richmont says the project is on schedule and on budget, with capital costs amounting to $15 million.