The owner of the Eastmain gold project in northern Quebec will receive a $3.4-million grant under a federal-provincial subsidiary agreement on mineral development.
MSV Resources (ME) says the recently confirmed grant is subject to an additional $15-million investment by MSV to bring the deposit, 310 km northeast of Chibougamau, Que., into commercial production.
The Montreal-based company says that during the past 10 months, it invested more than $7 million in the project. This work included construction of a 175-km-long winter road from the project to Albanel, upgrading the airstrip for supplies and transportation of personnel, construction and renovation of surface installations, dewatering of the underground workings and purchase of mining equipment.
The project will create 70 direct jobs this year, increasing to 100 once the project is in production.
Reserves (on a diluted basis) stand at about 1 million tons averaging 0.35 oz. gold per ton.
The company says ramp development at the project is progressing quickly. Ore production is under way and Eastmain is expected to produce 24,000 oz. gold this year from 80,000 tons.
The commercial production rate of 146,000 tons per year, yielding 50,000 oz., is expected to be reached in 1995.
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