How Soon Could NFG start mining?This was a question posted on this board by Rosie 1, yesterday.....now, I don't see that post...removed?....why?
Well, I posted an answer to that post, and here it is:
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My understanding is that by using Maritime Resource's (MAE) Pine Cove processing facilities on the coast of the Baie Verte peninsula in Newfoundland, which is 240 kilometers from Queensway North by truck ( but could also be barged to Pine Cove as it has a deep Water pier as part of the plant), mining could start somewhere in around one year or somewhat longer.
I believe Denis Laviolette stated this at one point.
The Pine Cove mill has key environmental permits. But NFG needs some permitting for its mining plans. However, the Newfoundland govt is very motivated to get mining going, and wants to have at least 5 new mines by 2030. So, they would likely be eager to help get NFG jump started ASAP, would seem reasonable.
NFG has penned a Memorandum of understanding with MAE regarding the processing of Quuensway ore at this facility, and NFG invested around $2 million in MAE ( maybe it was $4 million).
That plant can process 1400 tons of ore per day.
This is the quickest way to get into production I assume, and could posdibly generate enough profits/ cash flow to cover all or most, or at least much of, NFGs exploration costs and other development costs, and enable loans to be provided for further mine development in the future, I would think.
Starting small scale by open pit mining north Queensway, would also be a sound strategy to the start of mining operations. I have heard mining experts state that starting production at a small scale first is a smart strategy.
I believe this is the most logical step to start production ASAP.