Mining Explorers 2015: TMAC Resources Inc.

 

Last updated 11/1/2015 at Noon



TMR: TSX

Executive Chairman: Terry MacGibbon

Chief Executive Officer: Catharine Farrow

VP, Exploration and Geoscience: Dave King

TMAC Resources Inc. has its sights on bringing its Hope Bay gold project in northwestern Nunavut into production by the end of 2016.

The Hope Bay project, which TMAC acquired from Newmont Mining Corp. in 2013, blankets most of the 80-kilometer- (50 miles) long Hope Bay greenstone belt in the Kitikmeot region of Nunavut.

As part of its acquisition, TMAC inherited more than C$800 million worth of exploration data, development, and infrastructure from previous operators.

In January, TMAC published an upgraded resource of 14.73 million metric tons of measured and indicated resources grading 9.6 grams per metric ton (4.44 million ounces) gold; and 5.39 million metric tons of inferred resources grading 7.6 g/t (1.65 million oz) gold.

This resource supports a prefeasibility study that outlines a 2,000-metric-tons-per-day operation producing 3.2 million ounces of gold over an initial 20-year mine-life.

By leveraging the existing advanced infrastructure at Hope Bay, the PFS estimates that the robust economics of mining the high-grade gold at the project would result in a 1.7-year payback of the modest C$206 million in initial capital needed to bring the Hope Bay Mine into production.

In July, TMAC closed a C$135 million initial public offering that involved issuing 22.5 million shares at C$6 per share.

Following its listing on the Toronto Stock Exchange, the company received C$20.1 million from overallotment options.

This IPO, coupled with the C$68 million TMAC had in the bank and a US$120 million term loan facility provides the company with more than C$350 million.

"We are extremely pleased with the strong support TMAC has received, which allowed us to upsize our initial public offering," TMAC Executive Chairman Terry MacGibbon said.

"Our priority now is to continue advancing the Hope Bay Project towards planned first production by the end of 2016." TMAC has budgeted C$165 million for "path to production" expenditures during 2015.

This includes more than C$15 million on exploration that is primarily focused on the Doris and Madrid deposits.

Drilling at Doris is focused on further definition of stopes within the first two years of the Hope Bay mine plan.

Drilling during the fall of 2015 on the Madrid deposit trend is focused on the Naartok zone with the objective of further defining the high-grade areas and the addition of gold ounces to the resource base.

TMAC also carried out regional exploration work beyond the Doris, Madrid and Boston trends that included airborne magnetic-electromagnetic and induced polarization geophysical surveys over the Hope Bay greenstone belt.

Further afield, the company flew airborne geophysics over its Elu claims, which the company also purchased from Newmont in 2013.

The Elu claims cover 305 square kilometers (118 square miles) of the Elu greenstone belt, which is about the same age as the Hope Bay greenstone belt about 35 kilometers (22 miles) to the southwest.

TMAC says limited historical exploration at Elu suggests that there is potential for significant gold mineralization similar to the deposits found within the Hope Bay greenstone belt.

Cash and short-term deposits: C$23.4 million (June 30, 2015)

Working capital: C$25.6 million (June 30, 2015; completed C$155.25 million IPO in July)

Market Capitalization: C$428 million (Sept. 18, 2015)

95 Wellington St. West, Suite 1010, P.O. Box 44

Toronto, ON M5J 2N7

Tel: 416-628-0216

http://www.tmacresources.com

 

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