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Battle North greenlights Bateman build

Battle North Gold has pulled the trigger on the Bateman redevelopment project in Canada’s Red Lake gold camp in Ontario, outlining spending plans of at least C$76.9 million for 2021.
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The Battle North Gold board has approved redevelopment of the Bateman mine in Ontario's Red Lake camp, Canada

Staff Reporter

The company expects construction to start by March.

Battle North has earmarked $69.1 million in capex for underground development, building an ammonia reactor, upgrading the tailings impoundment, camp and mill-related costs, and buying the mining fleet.

The company expects to spend a further $17.8 million on opex for continued infill drilling, site maintenance, and underground development.

The company had previously approved $4 million to get critical-path items underway, placing the project on track to process first ore by year-end, followed by declaring commercial production late in 2022.

Battle North outlined a $93.2 million capex requirement in a 2020 feasibility study, based on a US$1,525/oz gold price to produce on average 80,000ozpa.

The company was in a strong cash position with $65 million at the end of November, 2020, and has a $40 million credit facility expected to close soon.

Battle North will also continue to advance regional exploration this year following the recent addition of Maura Kolb as the director of regional exploration. Kolb has spent the past seven-plus years working for Evolution Mining, Newmont and Goldcorp in the Red Lake camp.

The company has allocated about $10 million for 2021 regional exploration. Battle North has amassed a substantial holding in the Red Lake camp of about, which overlays most of the district's significant gold deformation zones.

The company, formerly known as Rubicon Minerals, released a maiden resource for the nearby McFinley deposit, eying satellite feed potential for Bateman in the future.

Battle North unveiled a circa one million ounce updated resource for Bateman in July last year, renaming it (from Phoenix) as part of "a new era" for the company at the previously mined operation, which was shuttered soon after its first gold pour in 2015 due to various issues.

Shares in the company (TSX:BNAU) closed nearly 3% lower in Toronto on Tuesday at $1.72, capitalising it at $222 million.