West Red Lake Gold Mines anticipates a potential working capital shortage in May as it restarts production at the Madsen mine in Ontario, Canada. The company has invested US$100 million in preparing the mine for restart, but initial production is projected to leave a thin working capital cushion. A 10,000t bulk sample will be undertaken to evaluate grade, tonnage, and mining methods. The company aims to achieve 67,600ozpa production over six years with a 7.2-year mine life.
West Red Lake Gold Mines could experience a working capital "pinch" in May as the company restarts production from the Madsen mine in the Red Lake gold district of Ontario, Canada, VP communications Gwen Preston told Mining Journal.Preston said the company has invested about US$100 million to get the mine ready for restart, but the initial production time will leave the company with a thin working capital cushion, which could require financing to top up.
"About one-third of that went into capital projects the previous owner did not do, one-third into access development into mining areas and one-third into definition drilling for the first 18 months of production," she said.The capital projects included buying a crusher, completing a tailings storage facility lift, building a mechanics shop and camp, and developing underground access to be able to undertake definition drilling. It also included developing a 1.
Mining Gold Production Restart Madsen Mine Working Capital Financing
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