Sudbury's Wallbridge Mining Company Limited has entered into a binding letter of intent to purchase 100 per cent of the Fenelon Gold Property in West-Central Quebec for $3.6 million.
The property is on the same geological belt that hosts the large Detour Gold Mine in Ontario.
Last October Wallbridge completed production on its Broken Hammer deposit in Greater Sudbury.
“Having completed our Broken Hammer open pit mine last year, where we achieved production substantially in excess of the resource estimate in the prefeasibility study and received recognition for safety, this new project allows us to leverage our experience and knowledge as a proven operator to create value for our shareholders,” said Wallbridge chairman Alar Soever, in a press release.
Soever said in a press release the Fenelon Mine Property is an ideal purchase for Wallbridge due to existing infrastructure at the site, including more than one kilometre of underground development, road access, proximity to gold milling facilities with available capacity, and historic resources.
Those historic resources, last estimated in September 2004, and later updated in January 2005, have estimated 47,927 tonnes of ore with gold grading at 19.61 grams per tonne.
“Based on my review of the Fenelon Mine Property using my 30 plus years of experience as mine operator and engineering consultant working on small and large projects in Northern Ontario and Quebec, I am convinced we can move this project forward rapidly and be in a position to make a production decision in the first half of 2017,” said Wallbridge president and CEO Marz Kord in a press release.
“We look forward to rapidly moving this project forward following completion of the transaction,” Kord added. “We are very encouraged by the grades that were mined during both the surface and underground bulk sampling campaigns, and with the exploration potential in the immediate vicinity of the existing underground workings.”
