Thursday, 24th April 2008 (382 views)

Atlantic Gold is looking to start production at the Touquoy gold project in Nova Scotia by late 2009, a new report indicates.

Mineweb notes that the company has set the target as it approaches receiving a mining lease for the site, which reportedly has 11.7 million tonnes of total resources grading 1.5 grams per tonne.

The resource is thought to have an initial mine life of six years, potentially providing an internal rate of return of 37 per cent and capital payback within a two and a half year period.

Wally Bucknell, managing director of the company, told the publication that the economics of the project are "robust".

"Indications are that the Touquoy gold project is readily fundable and we are currently evaluating the optimum mix of debt and equity," he said.

Atlantic Gold was founded when a group of investors led by Ron Hawkes acquired control of the company then known as Diamond Ventures, refocusing the firm's interest towards the exploration of gold.

 

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