A startup at the Colomac gold project in the Northwest Territories is set for the first half of 1994, Royal Oak Mines (TSE) reports.
The company hopes to complete a feasibility study by August and start mining in March or April, 1994. The mill may re-enter operation in June, 1994, with projected production of more than 64,000 oz. gold that year, the company says. Output for 1995 is projected to be 170,000 oz. Royal Oak bought the property from Neptune Resources for 3.5 million common shares of Royal Oak and an operating royalty payable when the average annual gold price exceeds US$400 per oz. and production exceeds 50,000 oz. (The royalty will expire after five years of operation.)
Neptune is part of the Northgate Exploration (TSE) group of companies. Colomac, 130 miles north of Yellowknife, started up in 1990 and operated for about one year before being suspended.
Neptune has entered an underwriting agreement with First Marathon Securities and Gordon Capital to sell its 3.5 million Royal Oak shares at $4.40 per share.
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