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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Newfoundland hands Maritime Resources full permit for flagship Hammerdown mine

The Baie Verte Peninsula project has about 272,000 ounces of proven and probable gold

Newfoundland government hands Maritime Resources major project permits for Hammerdown mine
The open pit area at the Hammerdown project in 2021. Photo credit: Maritime Resources

The junior miner Maritime Resources Corp. (TSX-V: MAE) (OTC: MRTMF) has successfully obtained major permits needed for its flagship operation in Newfoundland’s Baie Verte mining district.

The province’s Department of Industry, Energy and Technology approved Maritime’s development and closure plans for the Hammerdown gold mine on Thursday.

The past-producing underground operation churned out 143 kilo-ounces of gold between 2000 and 2004. Maritime then took a more recent interest in it and uncovered gold resources in the formerly utilized deposit’s surrounding area. The company says there is a structural trend extending over 10 kilometres with significant potential to add more ounces and cash flow.

Newfoundland government hands Maritime Resources major permits needed for Hammerdown mine

Hammerdown development concept: Maritime Resources

“Hammerdown is one of North America’s highest grade open pit gold projects,” President and CEO Garrett Macdonald said, “which, when paired with our existing fully-permitted Pine Cove mill and tailings storage facility, creates a unique opportunity in the market for strong near-term cash flow and attractive returns.”

Maritime recently poured its first gold doré bar at the Pine Cove mill.

Based on a 2022 feasibility study, the site is estimated to contain 272 kilo-ounces of ounces of proven and probable gold with an average grade of about 4.5 g/t Au. The company has invested C$75 million into the operation and has not specified the expected duration of its lifespan.

Furthermore, Maritime says it has identified three open pit targets at Hammerdown.

“These approvals also bring Maritime closer to providing employment and business opportunities within the region,” Vice President of Environment and Sustainability, Perry Blanchard, said.

Read more: Calibre Mining intercepts rich gold mineralization at Nicaragua’s Limon complex

Read more: Calibre Mining reports 96% net income rise for 2023, exceeds production guidance

Baie Verte mining district hosts larger companies too

Maritime’s Hammerdown mine, mill and gold processing plant are situated next to operations run by the Australian company Firefly Metals Ltd (ASX: FFM), the mid-tier producer Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) and the local miner New Found Gold Corp. (TSX-V: NFG).

The mining district is known for its high-grade mineralization. New Found Gold just pulled out an impressive 17-metre core sample containing 35 g/t Au. A 0.3-metre interval in that intercept contained an eye-turning 1,910 g/t.

Last month, Calibre intercepted 46.5 g/t Au over 5.3 metres at the Valentine gold mine. That operation is expected to produce about 195 kilo ounces for 12 years once commercial production starts in 2025.

Newfoundland government hands Maritime Resources major permits needed for Hammerdown mine

Map: Maritime Resources

 

Calibre Mining is a sponsor of Mugglehead news coverage

 

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