Disseminated on behalf of LaFleur Minerals Inc. (CSE: LFLR) (OTCQB: LFLRF) and may include paid advertising.
- Near-term gold producer LaFleur Minerals is strategically advancing toward the restart of a wholly owned and refurbished gold mill using existing stockpiles left by a previous operator
- LaFleur expects to resume operations during the next few months, eventually aided by a prepaid facility from one of the world’s largest independent commodity trading and logistics groups — Trafigura Canada Limited
- The agreement with Trafigura (currently in due diligence phase) contemplates an off-take agreement for gold doré and the potential for future prepaid funding facilities as the operation grows
- LaFleur’s Beacon Gold Mill and nearby Swanson Gold Deposit are located within the prolific Abitibi Gold Belt in eastern Canada, in the Val d’Or community that serves as a central hub for mining resources and staffing in the Abitibi
Near-term gold producer LaFleur Minerals (CSE: LFLR) (OTCQB: LFLRF) is close to making its Beacon Gold Mill and Swanson Gold Deposit production-ready at a time when gold’s market position is noticeably below its record $5,000-plus January levels but still far above price levels that were the status quo a mere two years ago.
LaFleur has been refurbishing the gold mill that was operational in 2022 under a different company’s ownership before a temporary halt in its function. The mill and nearby gold deposit are located within eastern Canada’s prolific Abitibi Gold Belt, the largest gold-producing region in the country (https://ibn.fm/VOOX4).
LaFleur CEO and Director Paul Ténière said during a May interview with Global One Media Group’s “Stocks to Watch” webcast that the refurbishing and recommissioning work on Beacon was about 60% complete and the company anticipated restarting operation within the next few months. As of today, the recommissioning work is closer to 84% complete.
“So, our first goal is obviously to get all that equipment up and running, and we will be doing that very shortly. The next step is then to get our tailing storage facility, the maintenance required on that to be done,” Ténière said (https://ibn.fm/Xce6V). “And then, from there, we do have test material on site. We have some stockpiles left over from the previous operator. … And then really the final step is to start work on the Swanson 100,000-tonne bulk sample and bring that mineralized material to Beacon and to start that test work.”
LaFleur expects to launch the mill with a gold pour processing 750 metric tons per day (“TPD”) while gradually building output to a 1,250 TPD target by the end of the first year (https://ibn.fm/C4CqE). The company will eventually benefit from a non-dilutive agreement with Trafigura Canada Limited or one of its affiliates by which LaFleur will receive up-to-C$30 million prepayment facility accompanied by a gold doré off-take agreement.
“I think one of the biggest [reasons for Trafigura’s capital infusion] is that the project is already pretty advanced,” Ténière told Stocks to Watch. “They knew we were working on a PEA [Preliminary Economic Assessment] that was combining both Swanson and Beacon and looking at the synergies between these two projects. And I think they just saw it’s a great low-cost opportunity. And we’re also quick to go into production as well. So, a lot of the other projects that they’re potentially looking at are maybe longer lead times and maybe several years before getting to that point.”
LaFleur’s PEA was completed in the spring and stated a case for strong economic returns from the operation.
“We’re looking at an all-in sustaining cost of just under $1,600 an ounce,” Ténière told investors during a March webinar. “This is at a base case of $2,750. Our technical report will be looking at a sensitivity of up-to-$5,000 gold. We can certainly be running [our Swanson gold project] for the next few years and be a very cost-effective and profitable operation.”
More recently, LaFleur has expanded its acquisitions within the Abitibi Gold Belt to add the McKenzie East Project and adjacent property to its Swanson Gold Project, bringing its total acreage to 57,083-plus (approximately 23,101 hectares), comprising 490 claims.
“So, we’re also doing independent geometallurgical work in the background with SGS and we’re getting results coming in on that, and also that’s going to help us fine-tune potentially on the flowsheet side,” Ténière told Stocks to Watch. “So we’re going to have all those ducks in a row.”
For more information, visit the company’s website at LaFleurMinerals.com.
NOTE TO INVESTORS: The latest news and updates relating to LFLRF are available in the company’s newsroom at https://ibn.fm/LFLRF
Qualified Person Statement:
All scientific and technical information contained in this article has been reviewed and approved by Louis Martin, P.Geo. (OGQ), Exploration Manager and Technical Advisor of the company and considered a Qualified Person for the purposes of NI 43-101.
