A $1.4-million placement of flow-through shares will fund two exploration projects around Breakwater Resources’ (BWR-T) dormant base metal mines in northwestern Quebec.
A $700,000 program of surface exploration and diamond drilling will blanket an 80-sq.-km land package around the Bouchard-Hbert mine, 30 km northeast of Rouyn-Noranda, which ceased production in February. Exploration in 2004 tested two geophysical anomalies in the immediate mine area, and previous work by former operators Cambior (CBJ-T) and Minnova identified a number of targets on the property.
Breakwater had decided earlier in the year to allow the mine workings to flood, having retrieved the underground mining fleet and usable underground equipment. The mill, rated at 3,100 tonnes per day, is still on care and maintenance in the event mining can resume.
At the Langlois mine, about 50 km north of Lebel-sur-Quvillon, Breakwater has budgeted $540,000 for exploration on the mineralized corridor that contains the mine (currently on care and maintenance) and two other massive-sulphide deposits, Grevet and Orphe.
The flow-through placement is for 3 million shares at 46 each.
A $10-million gold loan, to be repaid out of Breakwater’s gold production over the next 13 months, will pay for reclamation work and new development at the company’s Myra Falls mine on Vancouver Island, British Columbia. That loan bears interest at 2.9%.
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