DRYDEN — The proponent of a proposed mining development is encouraged about its potential.
During Monday’s regular council meeting, members from Treasury Metals presented its pre-feasibility study for the proposed Goliath Gold Complex.
"The logistics and infrastructure here are absolutely unheard of in the world,” Treasury Metals president Jeremy Wyeth said.
Wyeth called the potential site a tier-one region because road access, rail service, power, and gas are already available.
The economic upside for the mine’s potential is 2.1 million ounces of mineral resources and 0.8 million ounces of inferred mineral resources, which means there is significant exploration potential for the mining site.
Additionally, environment and regulatory affairs manager Zahir Jina outlined that the Goliath Gold Complex has several sections which will focus on third pieces of infrastructure.
Not only will there be underground and open-pit mining, but the Goliath ore site will have a processing facility along with various administrations building.
The other two sites — Goldlund Ore and Miller Ore — will work like an aggregate pit and the ore will be collected and sent to Goliath.
Wyeth said the cost to construct the complex will be $335 million. The total life of the mine is projected to be 13 years with an average annual production of 109,000 ounces from year one to nine. The total life of the mine can potentially recover 1.2 million ounces of gold, which would be worth $892 (US) per ounce cast cost and $1,037 (US) all-in sustaining costs over nine years.
When asked by Coun. Ritch Noel how long would it be before Treasury Metals will feasibly begin construction on the Goliath Gold Complex, Wyeth answered that they are looking to begin production by the end of 2026.
“We got about another year to do a feasibility study. Over the next 18 months to 21 months, we’re busy with both permitting and the discussion with the Indigenous communities. We would look at being in the position toward the end of next year, 2024, to take a construction decision,” said Wyeth.
Wyeth also acknowledged that during the second and third quarters of 2024, Treasury would need to secure the finances to build the complex.
“Typically, for a project of this size, we are looking at about 18 to 24 months to build it,” said Wyeth.
Coun. Bill Latham put forth a concern about the shortage of housing, an issue that many other municipalities have with a potential mining site nearby have encountered.
Latham asked if the mining site will have worker camps.
“Our preference is not to go to camp,” said Wyeth. “So, at this stage, we are not planning camps. The reason for that is we would prefer to have people that can go home at night, live in the area, and be part of our operations.”
Wyeth mentioned that he wants the complex to be staffed locally which will mean that Treasury Metals and the City of Dryden will need to set up a program to facilitate skilled training in trades. This would involve setting up a Friendship Accord, similar to what is in place in Sioux Lookout.
The Sioux Lookout Friendship Accord Economic Development Corporation enables signatories to apply for federal funding. In turn, the organization would use the funding to cover the cost of training with educational institutions that offer skilled trades.
