Deak Resources wins $800,000 loan

The Northern Ontario Heritage fund has agreed to loan Deak Resources (TSE) an additional $800,000 for modifications at the company’s gold mill near Virginiatown, Ont.

To date, the first phase of rehabilitation has expanded Deak’s milling capacity to 2,000 tonnes per day. The newly approved loan will enable the company to complete a tailings treatment system and install a flotation/regrind circuit designed for harder ores.The flotation circuit will also allow Deak to produce concentrates from carbonaceous or refractory gold ores.

Until both systems are completed sometime in April, Deak says the mill will continue to operate at a reduced rate.

Last year, the Heritage Fund approved a $2.1-million loan for Deak’s mill expansion project. The program is also sponsored by the federal Ministry of Industry, Science and Technology.