Maritime Resources (TSXV: MAE) says it has all major permits to restart the former Hammerdown gold mine in Newfoundland and Labrador.
The company has completed clean up at the Pine Cove mill and is assessing roughly 100,000 tonnes of stockpiles and tailings material that may grade 1.1 grams gold per tonne or about 3,000 to 4,000 oz. of contained gold, the Toronto-based company said on Thursday.
Hammerdown, in the Baie Vert mining district about 500 km west of provincial capital St. John’s, was an underground mine that produced 133,000 oz. from 2000 to 2004. Maritime is envisioning a high-grade open pit over a mine life of five years.
“With gold prices touching all-time highs, Maritime is well positioned with a fully permitted, high-grade development project and some excellent exploration upside ready to be drill tested,” president and CEO Garett Macdonald said in a release. “Steady progress has been made to de-risk the project ahead of a production decision.”
Maritime is completing the remaining pre-development work including metallurgical tests to ensure gold recoveries are optimized, and a full mechanical and electrical inspection of the Pine Cove mill it acquired last year. It’s considering installing a gravity circuit.
The Hammerdown project contains proven and probable reserves containing 272,000 oz. gold at an average grade of 4.46 grams gold per tonne, based on the 2022 technical report. The report showed after-tax economics of C$103 million net present value (NPV) discounted at 5%, an internal rate of return of 48% and all-in sustaining costs of $912 per oz. at a gold price of $1,750 per oz.
At a spot gold price of $2,300 an oz., the after-tax economics are a C$215 million NPV (at a 5% discount) with an internal rate of return of 91%.
Shares in Maritime Resources were flat on Thursday in Toronto at C$0.055 apiece, valuing the company at C$30 million. They’ve traded in a 52-week range of C$0.03 to C$0.065.
