Galleon Gold (TSXV: GGO) is planning to take an 86,000-tonne bulk sample from its 100%-owned West Cache gold project 13 km west of Timmins, Ont. The detailed design work is nearing completion, and when the final plan is ready, the company will apply for a bulk sample permit and look for a contractor to do the work.
A closure plan must first be approved by the Ontario Ministry of Mines before Galleon can begin advanced exploration at West Cache. The remediation of surface disturbances forms a large part of the application. The company must also apply for environmental compliance approval (ECA) for its sewage works, for air and noise permits, for water permits for both surface and underground workings, plus construction permits.
Baseline environmental studies begun over three years ago will continue. Galleon’s goal is to develop a producing mine.
Exploration at the West Cache property began in 1927, and many companies drilled the site until Explor Resources conducted a successful, modern drilling campaign. Galleon acquired Explor in December 2019.
The updated underground mineral resources (as of January 2022) include an indicated resource of 4.1 million tonnes grading 3.63 g/t gold and containing 474,000 oz. The inferred resource is 11.8 million tonnes at 2.87 g/t gold and containing 1.1 million oz. The calculations were made using a 1.6 g/t gold cut-off.
The preliminary economic assessment also done last year gives an after-tax net present value (5% discount) of $240.1 million and an after-tax internal rate of return of 26.7%. The initial capital costs will be $150 million for an after-tax payback period of 3.3 years. Sustaining capital costs over the life of the mine will be $199 million. A gold price of US$1,700/oz. was used.
More details about the West Cache project are posted on www.GalleonGold.com.
