📋 Tender Overview
Battle North Gold Corporation is pleased to provide an update on its 2021 construction plans for the Bateman Gold Project the Project. The Company also announces the appointment of Vice President Human Resources Rachel Pineault.CEO CommentBattle North President and Chief Executive Officer George Ogilvie commented Id like to welcome Rachel Pineault to the Battle North Management Team. Rachel brings significant experience in human resources and has been involved in building 5 mines in Canada. Her addition comes at a very important phase of Battle Norths progression as we embark on the significant growth of our organization in short order.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. 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.2021 Bateman Gold Project Construction Red Lakes Next Gold MineBattle North is advancing its shovel-ready Bateman Gold Project to become the next gold producer in the Red Lake gold mining camp. The Companys Board of Directors have approved construction of the Project as described in the Feasibility Study1 including the 2021 construction budget. The Company anticipates spending approximately C59.1 million towards initial capital development in 2021 including underground development construction of an ammonia reactor upgrades to the tailings management facility TMF camp and mill and the purchase of stationary and mobile equipment. As of January 31 2021 Battle North has spent approximately C4.0 million on critical path construction items as described below. The Company also plans to spend approximately C17.8 million on capitalized operating cost expenditures in 2021 including continued infill drilling site maintenance and underground development. As previously disclosed on December 22 2020 Battle North signed a commitment letter for a US40 million credit facility with Macquarie Bank Limited Credit Facility2. The Credit Facility in concert with our strong cash balance is expected to fully fund the Bateman Gold Project to Commercial Production.Based on the current construction schedule the Company is currently targeting the processing of ore at the Project by end of 2021 and the achievement of Commercial Production by the end of 2022.Critical Path Construction ItemsAt the end of November 2020 Battle North had commenced activities on key work streams that are critical to the Companys plan of achieving Commercial Production by end of 2022. These areas are as followsUnderground Capital Development In the Feasibility Study1 approximately 8600 metres m of underground capital development prior to Commercial Production was envisaged. This amount of development is expected to enable 9 to 12 months of development flexibility ahead of stope production. 3300 m of underground capital development is planned for 2021.To-date the Company has completed approximately 100 m of underground capital development. The 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 Projects 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.Pictures of the portal and ramp decline construction and ramp incline development respectively are set out below.Wastewater Treatment Before recommissioning the Project mill the Company will need to build an ammonia reactor to enhance its existing wastewater treatment plant. The ammonia reactor will process wastewater from the mill where ammonia is produced as a by-product of the cyanide destruction circuit and from the underground workings which contain small amounts of ammonia from the ammonium nitrate ANFO explosives used within the mine. Battle North has selected the supplier for the equipment and is finalizing the designs before construction commences. The ammonia reactor construction is expected to be completed in Q42021.The Company is also planning to upgrade its TMF. This includes buttress support in key areas as well as adding another lift to the current TMF configuration. The design work is being finalized and construction is expected to commence later this spring.Camp Upgrades The 242-person camp on the Bateman Gold Project property had been in care and maintenance for more than 5 years. The Company commenced work to upgrade the camp to allow for the safe accommodation of personnel and to permit social distancing in the common areas under the Companys COVID-19 protocols. The camp upgrades are nearing completion and the camp is expected to begin accommodating personnel by the end of Q12021.Battle North has assembled an in-house Engineering Procurement Construction and Management team EPCM team that will oversee construction of the Project.
