Mining News: Northern Neighbors: TMAC forms C$325 million tactical plan aimed at increased gold for coming Hope Bay Mine

TMAC Resources Inc. Jan. 14 plans to invest C$325 million on a tactical plan budget that aims to have its Hope Bay gold project in Nunavut ready to ramp to an operation that averages 1,000 metric tons per day in 2017. This new plan, which involves a C$35 million increase over a previous “path to production” budget, includes the accumulation of an ore stockpile sufficient to support ramp up to 2,000 metric tons per day by 2018. The tactical mine development plan, which runs for the period from the beginning of 2016 to the end of 2018, contains several changes in scope from a 2015 pre-feasibility study, including: increased underground development in 2016; larger low-grade stockpile for mill commissioning; 55,600 ounces of gold (at 15.2 grams per metric ton) in high-grade stockpile for mill start up, 30,200 ounces greater than the PFS; de-risking production ramp up; increased in gold production in 2017; and drilling to potentially extend Doris deposit below current reserves. “We are pleased with our progress in moving the Hope Bay Project to production, and delighted that the project remains on schedule for first production in late 2016,” said TMAC CEO Catharine Farrow. The exploration and geoscience budget for 2016 totals C$10.8 million. The 2016 exploration drilling program comprises surface and underground diamond drilling targeting both near-term (one- to three-year) production areas and longer-term expansion of resources at Doris. The main objectives are to facilitate detailed stope design within certain areas of the current Doris mine plan and to potentially add significant high-grade gold ounces to the Doris Mineral Resource base. A total of 12,000 meters of underground diamond drilling are budgeted for 2016, with 6,000 meters focused on infill drilling and 6,000 meters focused on resource expansion. A planned 8,000 meters of surface drilling will be focused on resource expansion and exploration in the southern portion of the Doris trend.

- Shane Lasley