Vancouver-based First Standard Mining (VSE) says it has started dewatering the Val St. Gilles gold mine north of Rouyn-Noranda, Que., and has received all the environmental permits and approvals necessary for production.
The company plans to mine bulk samples from the deposit in two phases. Phase One, expected to take eight months to complete, will tap reserves of 34,500 tons grading 0.35 oz. per ton. Phase Two will process a larger reserve of 80,500 tons grading 0.35 oz. First Standard recently reached a processing agreement with American Barrick Resources’ (TSE) Camflo mill near Val d’Or, Que.
At a gold price of US$350 per oz., the junior expects to realize a pretax cash flow of about $4.4 million and total revenues of $15.3 million.
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