Maritime Resources (TSXV: MAE; US-OTC: MRTMF) plans mining its past-producing Hammerdown mine in Newfoundland in this year’s second half, president and CEO Garett Macdonald says.
The Toronto-based company is to be among the handful of juniors that stay with a project from exploration through development to production. Ore from Hammerdown, which has all major permitting in place, is to be routed through its recently recommissioned Pine Cove mill. In April, the company secured $20 million in financing from Dundee (TSX: DC-A) and Eric Sprott. It also processed its first gold.
“We started the processing plant about three months ago with stockpile material that was existing around in the mill at these higher gold prices,” Macdonald said last week during The Mining Investment Event of the North in Quebec City. “At $3,300 an oz., it’s actually quite attractive.”
Proven and probable reserves at Hammerdown total 1.9 million tonnes at 4.5 grams gold per tonne for 272, 000 oz. of metal Maritime is able to “bootstrap production” with a budget of $15–20 million. This is much lower than the usual $300–500 million needed for a greenfield build, Macdonald says.
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