Jekyll Island Series – Michael Hepworth: Restarting a 100,000 Ounce Gold Producer in Finland
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Michael discusses how Firesteel Resources ( TSX:V FTR ) has managed to purchase sixty percent interest in a past producing gold mine with a mill. It has 600,000 ounces in the ground, and they were able to obtain it for twenty million dollars. The mine was being mismanaged, and they have spent the last six months looking at the issues. The people who were involved did not have sufficient engineering skills to avoid dilution however they were good at understanding the geology. There are several areas where improvements can be made in the production. They feel they have a straightforward and clear plan going forward.
They have been able to get financing, and they hope to get a re-rating by the market. They should have additional funds coming in by the end of October. They have some metallurgical testing which will show what they can get in the way of recoveries. Once they start to drill and blast they plan to begin stockpiling ore for their mill as it is oversized for the current size of the mine. There are many potential areas where they can likely expand the resource.