Great Atlantic Resources Corp (TSX-V:GR) told investors that its Golden Promise Mines subsidiary has signed a Memorandum of Understanding (MOU) with Novamera Inc to evaluate the use of surgical mining and Novamera's technologies as the extraction method for Golden Promises’ Jaclyn Main Zone.
Golden Promise Mines is a gold development company which wholly owns several projects in central Newfoundland. The Jaclyn Main Zone currently contains an NI 43-101 compliant mineral resource estimate of 119,900 inferred ounces at 10.4 grams per tonne (g/t) gold.
Great Atlantic said surgical mining is an option for bringing deposits into production that are the size and style of the Jaclyn Main Zone. The innovative solution is a more cost-effective and faster path to production, while also radically reducing environmental and social impact.
Given the low upfront capital costs and minimal development costs, the company said surgical mining enables junior mining companies to get into production and generate cash flow, offering a second source of cash and relying less on the capital markets to fund strategic plans. In addition, the time to permit can be reduced because of the small footprint and scale of the operation.
"We are thrilled to embark on this partnership with Novamera Inc as we explore the potential of surgical mining and Novamera's innovative technologies for the Jaclyn Main Zone project,” Great Atlantic Resources CEO Chris Anderson commented in a statement.
“This collaboration underscores our commitment to sustainable and efficient mining practices, which we believe will not only benefit our shareholders but also contribute positively to environmental preservation. We look forward to the journey ahead and the possibilities it holds for our company and the mining industry as a whole."
Great Atlantic noted that the MOU sets out a series of milestones that include a conceptual surgical mining economic desktop evaluation, Guidance Tool calibration activities and a bulk sample. The parties expect to complete these activities within the next twelve months, it added.
"We're excited to be working with Great Atlantic and demonstrating the capabilities of surgical mining and our technologies,” Novamera CEO Dustin Angelo added.
“Mining companies like Great Atlantic are looking for solutions to bring deposits into production with a smaller environmental footprint than that of conventional mining methods. The willingness to look at a different business model will open more strategic options to generate value for their shareholders and realize positive cash flow sooner for a project."
Vancouver-based Great Atlantic Resources is a Canadian project generation company focused on the discovery and development of mineral assets in Atlantic Canada.
Contact the author at stephen.gunnion@proactiveinvestors.com