Disseminated on behalf of LaFleur Minerals Inc. (CSE: LFLR) (OTCQB: LFLRF) and may include paid advertising.
- Canadian near-term gold producer LaFleur Minerals recently released the results of a Preliminary Economic Assessment (“PEA”) outlining a capital efficient project with robust economic returns
- LaFleur executives Kal Malhi (Chairman) and Paul Ténière (CEO and Director) participated in a March 24 webinar where they discussed the positive PEA results with investors as well as outlining some of the company’s next steps
- LaFleur’s strategy is based on a low CapEx mine-to-mill project, which includes a wholly owned and permitted gold mill approaching restart readiness, a tailings pond and a gold deposit that has undergone advanced exploration outlining expansion and scalability
- The mill is expected to begin processing material in the spring, thanks partly to the success of prior capital raises, with another anticipated in April or May
LaFleur Minerals (CSE: LFLR) (OTCQB: LFLRF) executives promoted the company’s expectations for a straightforward path to profitability, backed by the results of a recently completed Preliminary Economic Assessment (“PEA”), during a March 24 webinar with investors.
Board of Directors Chairman Kal Malhi pointed out the advantages of LaFleur’s three-tiered economic model, which includes the interconnected relationship between the company’s Beacon Gold Mill, the tailings pond at the mill, and the Swanson Gold Deposit all located within close proximity to each other in the prolific Tier‑1 Abitibi Greenstone Belt of Eastern Canada.
“That PEA shows healthy economics,” Malhi said before inviting questions from webinar participants. “We’re a junior gold company but we’re very unique in having those three assets. … Our Beacon Mill is 20 minutes out of the town Val d’Or, which is the best mining town in Canada. And the Swanson Project isn’t too far, so our staff could live in Val d’Or, go to work every day. This isn’t a project where we’re flying in material and staff and building camps. So with the price of gold where it is, having the mill ready to go, that’s a unique investment opportunity, I think.”
CEO and Director Paul Ténière noted that the PEA’s very conservative base case metric is established on a market in which gold would be trading at $2,750 per ounce, with All-In Sustaining Costs (“AISC”) that allow for profitability with an after-tax IRR of 65% and a rapid payback period of 1.8 years. Given that gold has been trading mostly between $4,500 and $5,500 per ounce during the past three months, Ténière said recent market fluctuations have not been a concern. “With this being such a low-cost operation, we don’t anticipate any issues there at all,” he said.
LaFleur is aiming to restart the Beacon Gold Mill this spring, to capitalize on the robust price of gold. The mill was formerly owned by Monarch Mining, who refurbished the mill for about $20 million in 2022, Malhi said. LaFleur obtained the mill and the Swanson deposit at a bankruptcy sale two years ago and is nearing the finish line on its efforts to resume operations at the site, which would be a major pivot point for the company as it enters revenue generation.
“The Beacon Gold Mill is fully permitted, refurbished, and funded for restart following a C$7 million financing,” recent analysis by Zacks Small Cap Research states (https://ibn.fm/Z02EY). “With multiple catalysts ahead, including ongoing drill results, bulk sample approval, and mill commissioning, the company is positioned for a meaningful re-rating as it advances toward production.”
Malhi said the company plans a new capital raise in April or May. The executives noted that the mill’s current processing capacity is around 750 metric tons of material per day, but after LaFleur meets its initial target of restarting the mill with a gold pour from a Swanson bulk sample, the company aims to upgrade the mill to 3,000 to 4,000 tonnes per day, which would put it in the category of about 100,000 ounces per year.
The mill “is able to process gold, silver, and even a little bit of base metals as well, so it can handle multi-element-type deposits,” Ténière said during a separate event last month (https://ibn.fm/xNRbi).
The initial Swanson Deposit obtained from Monarch was “fairly small” — 6,000 hectares (14,826 acres), Malhi said. But LaFleur continued to increase its exploration potential, obtaining additional area from Abcourt Mines and Globex Mining to position its project size at about 19,214 hectares (47,479 acres) currently. “We did that by incorporating other known deposits within the area, and especially to the south,” Ténière said. “Our goal is to continue to increase the size of the resource. Not just at the Swanson Deposit but across the entire project area.”
There are two major structures running through the project and Ténière said, “We have over 50 showings in some cases including for gold, for base metals.”
A recording of the webinar will be placed on the company’s website.
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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