Bonterra Resources Inc (TSX-V:BTR, OTCQX:BONXF) said Wednesday it intends to accelerate development of the Gladiator, Moroy and Barry deposits while expanding the capacity of the Urban Barry Mill in Quebec, Canada.
The latter is the only permitted mill in the region, with more than 15 high-grade gold deposits within a 110 kilometer radius of the mill site.
Bonterra said it will undertake a mill expansion project in order to increase the production capacity from 1,200 tonnes per day (tpd) to 2,400 tpd.
This is expected to be completed in 2019, allowing a shortened timeline to production for the Barry, Moroy and Gladiator deposits.
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Recent drilling in the Barry Deposit has resulted in the expansion of high-grade areas. Bonterra expects to rapidly increase the size of the Barry Deposit especially at depth, given that very little drilling has previously taken place below 300 meters depth over a one kilometer strike length. An updated mineral resource estimate is expected for for the fourth quarter of 2018.
The Moroy Deposit is a recent discovery at the Urban Barry Mill property with access via the Bachelor Lake Mine.
Current development consists of three sub-drifts and a series of raises, accessed from the 11th level at Bachelor Lake.
Exploration and development continue at the Moroy deposit with a mineral resource estimate planned to be completed early in 2019.
Bonterra will update the mineral resource estimate at the Gladiator deposit over the next month.
The company is initiating permitting in order to develop a decline and complete a bulk sample at the deposit over the next year. With significant exploration potential for expansion, drilling will continue at the deposit, which remains open in all directions.
Bonterra recently discovered a new high-grade gold zone 200 meters to the north of the deposit. The recent option agreement with Beaufield Resources on the Duke property has allowed for larger step out drilling at the deposit. Other showings and mineralized zones are also being prioritized for drilling.
Bonterra shares in Canada were trading steady at C$0.355 by midsession on Wednesday.
Bonterra Resources is a Canadian gold exploration company which is based in Vancouver, Canada.
Reporting by Rene Pastor, contactable at [email protected]