The chairman of Minnova hopes to open a mine near Flin Flon in about a year.
Gorden Glenn, chairman, president and CEO of Minnova, gave an update to members of the Flin Flon and District Chamber of Commerce about the company’s PL Mine.
Glenn said the mine, located at Puffy Lake near Sherridon, may employ between 110 and 120 people, including between 90 and 100 equipment operators and miners.
“Most of those are in the mine and mill, so you’ll need to have some level of skill – tradesmen and mining, mechanics, there’ll be some administrative jobs on the horizon,” said Glenn.
Glenn and Minnova anticipate $35 million in capital expenditures for the mine project, adding that he expected to see “fast payback.”
According Minnova’s projections for the mine, the company expects around 46,000 ounces of gold extraction per year from the site – after operating expenses, capital expenditures and taxes, the company expects around $22 million in profit each year from the mine. If those figures hold steady, it would mean the mine would pay off all capital expenditures after about a year and a half of operation. A feasibility study on the mine site lists the mine life at a minimum of five years.
Work on the mine site has taken place on-and-off for the past six years.
The mine project takes advantage of the previous Puffy Lake mine, opened and operated by Pioneer Metals in the 1980s.
While the mine hasn’t been fully utilized since it was shut down decades ago, vital infrastructure and buildings are still standing at the mine site.
“We’ve got a road, we’ve got a mill, we’ve got a crusher. We’ve got power partially refurbished to the site. The original power line was burnt back in the ‘90s when some big fires went through there. It’s been partially refurbished, we’re working with Hydro right now to finish that off so we can literally plug the mine site back in,” said Glenn.
The project will use the previous mine’s portal, then will head east toward an area that was not processed during the mine’s original lifespan. Glenn brought isometric diagrams to show to Chamber members, showing plans for a much larger and deeper operation than before.
Around seven kilometres of underground development was done during the original Puffy Lake mine, most of which is currently flooded.
The mine is about 100 kilometres away from Flin Flon, between 60 and 70 kilometres down the road to Sherridon. Glenn said Minnova had received a letter of support from Sherridon’s town council last year and would be looking for support from other communities – including Flin Flon – this year.
Glenn discussed the idea of using buses or even utilizing the nearby Keewatin Railway Company train line as a way to transport workers to the site, but added that no plans had yet been confirmed.
Glenn also added that, despite the distance, having another operating mine in the north could aid Flin Flon’s economy.
“Obviously, we’re a little bit further away from Flin Flon than some other operations around here, I suppose, but Flin Flon is where all the miners are. Flin Flon is where all the service providers are, so it’s going to have an impact on Flin Flon for sure,” he said.
“My view is that I can engage other businesses. It’s all about how we can go about doing things here and how we can give consultants and service providers opportunities,” he said.
