Northern Sun Mining Corp. has entered into a definitive agreement with QMX Gold Corporation to Acquire the Snow Lake gold project in Manitoba (the “Snow Lake Property”). Upon closing of the transaction, which is expected to close on or about November 30, 2013, Northern Sun will have the following:
- Immediate medium-term growth potential targeting 80,000 ounces of gold per year at the Snow Lake Property, with projected total cash costs estimated at CDN$852 per ounce gold
- Measured and Indicated Resources of 5,471,000 tonnes grading 4.14 g/t Au for 728,000 oz Au; and additional Inferred Resources of 2,367,000 tonnes grading 4.43 g/t Au for 336,700 oz Au (see Press Release dated August 28, 2013)
- Proven and Probable Reserves from these resources are calculated to be 3,477,000 tonnes grading 4.04 g/t Au for 451,900 oz Au (See Press Release dated August 28, 2013)
- Two mills (1,500 tpd capacity Redstone Mill in Timmins, Ontario and 2,150 tpd capacity Snow Lake Mill in Snow Lake, Manitoba) strategically located in two leading Canadian gold districts providing a platform for regional consolidation and future production growth, including custom milling
Northern Sun also currently owns two former producing nickel mines and a large prospective land package in the Shaw Dome area, a prospective nickel belt near Timmins, Ontario. Northern Sun has temporarily suspend nickel production due to current nickel prices and has placed its mine operations into care and maintenance. The Company will re-start production when the price of nickel recovers.
Northern Sun owns the Redstone Mill which has operated as the only nickel concentrator in this Region. The Mill was designed with two processing circuits which can operate in tandem at 1,500 tonnes per day (“tpd”), but with the flexibility to operate independently processing two difference ore types, each at 750 tpd. In 2014, the Company intends to re-open the mill to offer toll milling services to a variety of deposits in the Timmins Camp and general area.
The Company trades on the TSX under the symbol NSC.