A private placement for McFinley Red Lake Mines of 600,000 shares worth $1.8 million for construction of a milling plant and to provide working capital has been completed, Kleinwort Grieveson Securities reports.
Work has begun on the foundation for the mill building and it is anticipated the plant will be operational in about three months at the Red Lake area mine site in northwestern Ontario.
“Meanwhile, the underground development program, financed by flow-through funds, is proceeding on schedule,” the securities firm reports. “It is expected the first ore will be brought to the surface in early April for stockpiling.
“The initial 15,000 tonnes is to be bulk sampled to gain a better understanding of the grade. At the moment, drill-indicated reserves stand at 430,000 tonnes grading 0.234 oz per tonne. However, there is a pronounced `nugget’ effect in McFinley ore and it is likely the grade could be higher.
“The current diamond drilling program is expected to further define reserves, while an infill drilling program underground is also about to start, for grade control purposes.”
Be the first to comment on "Funding in place for milling plant"