Battle North developing Red Lake’s next gold mine

Battle North Gold Corp. [BNAU-TSX; BNAUF-OTCQX] said Tuesday February 9 that it is advancing its Bateman Gold Project with the aim of becoming the next gold producer in the Red Lake, northwest Ontario gold mining camp.

The company said its board of directors has approved construction of the project and expects to spend approximately $59 million on initial capital development this year, including underground development, construction of an ammonia reactor, upgrades to the tailings management facility, camp and mill and the purchase of stationary and mobile equipment.

Based on the current construction schedule, the company hopes to be processing ore by the end of this year. Commercial production is expected to be achieved by the end of 2022.

The announcement comes after Battle North recently raised almost $61.4 million from a bought deal offering comprised of common shares and flow-through shares.

The amount was raised from the sale of 30.1 million common shares at $1.85 per share and 2.14 million common shares issued as flow-through shares at $2.68 per share.

Battle North’s key asset is the 100%-owned Bateman Gold Project, which is located near Red Lake. Battle North was previously known as Rubicon Minerals. The Bateman Gold Project has also undergone a change of name from the Phoenix Project.

The Bateman Project comprises the high-grade F2 Gold Deposit, more than 14,000 metres of underground development, including a 730-metre commissioned shaft. The surface infrastructure includes a 1,250 tonne-per-day mill, tailings management facility and 200-person camp.

The project benefits significantly from its proximity to Evolution Mining’s [EVN-ASX] Red Lake and Campbell underground mining and processing complexes.

According to a feasibility study, the Bateman Project is expected to produce 603,000 payable ounces of gold over 8.2 years or an average of 80,000 ounces annually at an all-in-sustaining cost of US$86/oz.

The company has said the potential exists to extend the mine life through conversion of mineral resource estimates at depth and along strike. Total proven and probable reserves stand at 3.56 million tonnes, grading 5.54 g/t gold or 634,838 ounces.

Battle North has $704 million of tax loss pools at its disposal. The feasibility study life-of-mine plan utilizes approximately $297 million worth of tax loss pools.

Battle North shares rose $0.01 or 1.56% to $1.78 on volume of 106136. The shares are currently trading in a 52-week range of $2.28 and 54 cents.