NORTHERN Sun Mining Corporation, formerly Liberty Mines, and its largest shareholder Jien International Investment Limited, are implementing a turnaround plan involving various restructuring activities to re-position the company as a near-term gold producer in Canada. Forbes & Manhattan is assisting with the restructuring which involves a private placement aimed at raising up to Can$30 million.
Jien International Investment Limited is a wholly-owned subsidiary of Jilin Jien Nickel Industry Co, a Shanghai Stock Exchange listed company. The main scope of business is investment, development, production and sales of mineral resources in Canada.
Part of the restructuring process involved the change of name, which took place in October. It has also involved a definitive agreement with QMX Gold to acquire the Snow Lake property in Manitoba, which was expected to be completed by November 30.
Snow Lake assets include the New Britannia Mine with associated plant, infrastructure and equipment including a permitted 2150 tonnes/day mill and tailings facility. The property consists of about 104sqkm of mineral claims and leases containing more than 10 known mineralized zones, including four gold deposits with NI 43-101 mineral resources, three of which are historic production sites. Snow Lake camp is highly prospective for gold mineralization and hosts the Lalor gold project, owned by HudBay Minerals.
Following completion of the acquisition, Northern Sun will have the following gold profile:
- Medium-term growth potential targeting 80,000 ounces annually at Snow Lake, with projected total cash costs estimated at Can$852/ounce.
- Measured and indicated mineral resources of 5.471 million tonnes @ 4.14 grams/tonne gold for 728,000 ounces and inferred resources of 2.367 million tonnes @ 4.43 grams/tonne for 336,700 ounces. Proven and probable reserves from these resources are calculated to be 3.477 million tonnes @ 4.04 grams/tonne for 451,900 ounces.
- Two mills (1500 tonnes/day capacity Redstone Mill in Timmins, Ontario and 2150 tonnes/day capacity Snow Lake Mill) located in two leading Canadian gold districts providing a platform for regional consolidation and future production growth, including custom milling.
The company also recently instituted a remediation plan of its Redstone mill and McWatters’ mine site and implemented a share consolidation.
Northern Sun owns two former producing nickel mines and a large prospective land package in the Shaw Dome area, a prospective nickel belt near Timmins. It owns Redstone Mill, which has operated as the only nickel concentrator in this region. The mill was designed with two processing circuits which can operate in tandem at 1500 tonnes/day, but with the flexibility to operate independently processing two ore types, each at 750 tonnes/day. In 2014, the company intends to re-open the mill to offer toll milling services to a variety of deposits in the Timmins Camp.