Pan American Silver, an established Timmins mine operator, is investing $8 million into Galleon Gold to begin test mining at the West Cache project, outside the city.
Toronto-based Galleon has been making preparations to extract an 86,500-tonne underground bulk sample to gain some valuable intel for an upcoming pre-feasibility study on how to mine the 11,580-hectare gold property, 13 kilometres west of Timmins.
The closure plan for the up-and-coming West Cache project was approved by the provincial energy and mines ministry last April, which includes permission to take the sample. Galleon has not yet made a decision to construct a mine.
Galleon said in a news release that the Pan American funding would be used for surface development surrounding the sample extraction.
The test mining program and the information gathered from the sample will help Galleon in its mine planning, with its future exploration programs, on mining methods and mill processing, and with the gold recoveries. No date was provided in the release as to when the sample will be taken.
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