The group behind an effort to restart the former Puffy Lake gold mine said the mine will not likely start in 2019 as planned.
Minnova Corporation, the Toronto-based company that owns the mine (now known as PL Mine), told The Reminder that a slow gold market will delay the start of the mine.
“What we’ve found is, since March, April and May, market interest has just gone sideways,” said Gorden Glenn, chairman, president and CEO of Minnova.
“I can’t push on a string. If the market’s not going, and my shareholders aren’t reflecting good value, it’s sort of flogging a dead horse until the gold price picks up, and which point we’ll pick up the program.”
On Aug. 3, the price of gold averaged around US$1,220 per ounce. Over the past six months, gold prices have decreased by more than US$110 per ounce and have seen volatile peaks and valleys at times.
“The spring was actually very good, from a market point of view. It was improving. The market was improving but the gold market has been in a bit of a downturn for three, four, five years now,” said Glenn.
In a presentation made to members of the Flin Flon and District Chamber of Commerce in January, Glenn expressed confidence in the mine site itself and the minerals it possesses. He maintains the mine is viable, particularly once gold markets stabilize.
“It’s ready to go. We’re actually chipping away on other things associated with the project, beyond mining,” he said.
“That’s tied to the price of gold. We have no control over that price whatsoever.”
The company has resorted to new ideas to keep the site going, installing a biomass generating station near the mine.
“We’re pretty much convinced that biomass will work there – period, end of story. It’s a question of how big it will be – will it be the size of a garage, or will it be a medium-sized or a larger-sized powerplant?” said Glenn.
Biomass generation uses leftover material, such as household waste, scrap wood and lumber and forest debris. The material is burned, creating steam that runs a turbine, which can be used to provide electricity or heat.
Glenn said he hopes the station can either power the mine site or be used as a community profit generator.
“Biomass produces electrons that we could then pump into the mine. Besides that, it also produces heat, which we could utilize to have our own little vertical greenhouse,” said Glenn.
“We’re doing those sorts of things, and they’re really based upon economic development, creating more jobs, sustainable and green jobs.”
Glenn remains hopeful that the mine will be started in the coming months, adding that the company’s feasibility study and drilling campaign have shown positive results.
