Gold explorer seeks mine restart: Orefinders Resources starts assessment study of former Kirkland Lake mine.

• Position: NEWS

A Toronto junior explorer has eyes on putting a former Kirkland Lake-area gold mine back into production.

Orefinders Resources is crunching the numbers on a new resource calculation around a high-grade gold zone they discovered within the former Mirado open-pit mine, and are starting a preliminary economic assessment (PEA) to consider restarting mining operations.

The property, located 35 kilometres southeast of Kirkland Lake, contains three former mines, including the Mirado.

Gold was first mined on the property in the 1940s followed by number of companies who subsequently explored, drilled and mined over the years with the last being Golden Shield Resource in the mid-1980s. Much of the Mirado south zone was pre-stripped and an open pit was mined to a depth of 30 metres. The material was removed from the pit and stockpiled on the property.

Last year, Orefinders dug into those stockpiles, crushed, and shipped it to Quebec for processing.

More than 1,400 ounces of gold was recovered, presenting the company with a revenue generating opportunity.

In March 16 news release, Orefinders said the PEA will contemplate whether a high-grade near-surface gold resource in its South Zone of the open pit can be potentially put into production. The company also found drill core taken by Amax Minerals at the site during the early 1980s that will be incorporated into their geological modelling.

Various toll milling scenarios will be considered since many area mills have excess capacity. Toll milling would reduce capital requirements, eliminates the need for a tailings facility and a lengthy permitting process, and can generate cash flow for the company.

In unveiling its 12-month plan, Orefinders said it has two drill programs in the works to extend mineralization below the historic open pit, westward to incorporate its MZ Zone.

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