Disseminated on behalf of LaFleur Minerals Inc. (CSE: LFLR) (OTCQB: LFLRF) and may include paid advertising.
- Near-term gold producer LaFleur Minerals is preparing to restart production at its Beacon Gold Mill located in the Abitibi Gold Belt, using a 100,000-metric tonne bulk sample from its nearby Swanson Gold Project as a feed source for its first gold pour
- The company expects to benefit from market prices in the $4,400 to $4,500 range to generate healthy revenue above its $2,750-an-ounce base case with an all-in sustaining cost of just under $1,600 an ounce
- LaFleur’s strategic acquisition of mining projects, development of its facilities, and plans for keeping its operation low-cost, underscores a recent agreement to increase the aggregate gross proceeds of a secured “bought deal” public offering
The gold market has obviously enjoyed a phenomenal year, trading broadly between $3,215 and $3,406 per troy ounce in May of last year, going on to hit its most recent apex near $5,600 in the early part of this year (https://ibn.fm/p5I1V). Market fluctuations have centered on the $4,400 to $4,500 range amid shifting central bank policies and international tensions, which have still allowed gold to hold at levels well above last year’s “record” highs (https://ibn.fm/liZOI).
The heady prices have enabled gold miners with break-even costs near $2,700 to post record profit margins, which has in turn fueled optimism in gold mining investment, including with leveraged exposure. Near-term gold producer LaFleur Minerals (CSE: LFLR) (OTCQB: LFLRF) is on the cusp of beginning production with its Swanson Gold Project, nearby Beacon Gold Mill, and the newly acquired McKenzie East Gold Project — all situated in the prolific Abitibi Gold Belt in Québec.
LaFleur’s nearly 22,400-hectare gold projects are previously operated sites conveniently accessed via over-the-road and rail line transportation within the Val-d’Or mining camp where labor and supply resources provide key support for mining operations in the Abitibi region.
The company recently reported significant assay results from its ongoing drilling program at Swanson, including findings in four drill holes of 2.95 g/t Au over 80.00 meters, 2.37 g/t Au over 88.05 meters, 1.29 g/t Au over 93.85 meters, and 0.86 g/t Au over 103.55 meters plus 1.14 g/t Au over 56.65 meters (https://ibn.fm/ZjGMh).
LaFleur is actively working to resume gold production at the Beacon Gold Mill during the coming quarter after finalizing upgrades to the facility that will allow it to launch material processing at 750 metric tons per day (“TPD”), drawing on existing stockpiles on site and approximately 100,000 metric tons from a bulk sample for the company’s first gold pour and incrementally increasing capacity to 1,250 TPD.
The company’s Preliminary Economic Assessment (“PEA”) completed in the spring anticipates a strong economic return from the operation.
“We’re looking at an all-in sustaining cost of just under $1,600 an ounce,” CEO and Director Paul Ténière told investors during a March 24 webinar. “This is at a base case of $2,750. Our technical report will be looking at a sensitivity of up-to-$5,000 gold. … We can certainly be running (our Swanson Gold Project) for the next few years and be a very cost-effective and profitable operation.”
Because of “significant investor demand,” LaFleur announced May 27 that it has agreed with Red Cloud Securities Inc. to increase the aggregate gross proceeds of a preciously secured “bought deal” public offering in which Red Cloud, as underwriter, will purchase units of LaFleur for potential resale as a public offering, as well as flow-through units of the company to be offered as charitable flow-through units in accord with Canada’s tax deduction laws (https://ibn.fm/mxprF).
The agreement increases the equity offerings from C$8 million to C$10 million, with potential gross proceeds of C$11.5 million if over-allotment and underwriter options are fully exercised, according to the news release. The net proceeds from the offerings will be used by the company to restart gold production operations at Beacon, continue exploration and drilling programs at Swanson and provide working capital for strategic acquisitions and other corporate purposes.
For more information, visit the company’s website at LaFleurMinerals.com.
NOTE TO INVESTORS: The latest news and updates relating to LFLRF are available in the company’s newsroom at https://ibn.fm/LFLRF
Qualified Person Statement:
All scientific and technical information contained in this article has been reviewed and approved by Louis Martin, P.Geo. (OGQ), Exploration Manager and Technical Advisor of the company and considered a Qualified Person for the purposes of NI 43-101.
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