Battle North Gold Approves Bateman Construction Plans 

Battle North Gold Corp. is advancing its Bateman gold project to become the next gold producer in Ontario’s Red Lake gold mining camp. The company’s board approved construction of the project and the company anticipates spending approximately C$59.1 million (US$46.6 million) toward initial capital development in 2021, 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.

“Construction on critical path items has commenced at the Bateman gold project and we are excited that the board has approved the full construction of the project, with the potential to be pouring first gold by the end of the year,” Battle North President and CEO George Ogilvie said. “In addition, we have commenced drilling of highly prospective targets on our regional Red Lake Properties and we will be providing an overview of our 2021 exploration plans shortly.”

The company is currently targeting the processing of ore by the end of 2021 and achieving commercial production by the end of 2022.

As of January 31, Battle North has spent approximately C$4 million (US$3.2 million) on critical path construction items. The company also plans to spend approximately C$17.8 million (US$14.03 million) on capitalized operating cost expenditures in 2021, including continued infill drilling, site maintenance and underground development.

The project’s feasibility study called for approximately 8,600 meters (m) of underground capital development prior to achieving commercial production. This amount of development is expected to enable nine to 12 months of development flexibility ahead of stope production. Nearly 3,300 m of underground capital development is planned for 2021. To date, the company has completed approximately 100 m of underground capital development.

A contractor has completed the construction of the surface portal and is currently advancing the ramp decline. In addition, the contractor has also been advancing the ramp incline between the 244 m and 183 m levels, which will connect to the decline from surface. Once the connection has been made, the ramp provides another point of access to transport equipment, personnel and material to and from the underground, as well as the project’s fully operational shaft. The company is also advancing the development on the 610 m level that will ultimately be used to establish a fresh-air raise from the 610 m level to the 305 m level as part of the underground ventilation system.

Before recommissioning the mill, the Battle North will need to build an ammonia reactor to enhance its existing wastewater treatment plant. Battle North has selected an equipment supplier and the ammonia reactor construction is expected to be completed in the fourth quarter of 2021.

Battle North has assembled an in-house Engineering Procurement Construction and Management (EPCM) team that will oversee construction of the project. During December, the company signed a commitment letter for a US$40 million credit facility with Macquarie Bank Ltd. “The credit facility, in concert with our strong cash balance, is expected to fully fund the Bateman gold project to commercial production,” Ogilvie said.