Newlox Gold Ventures Corp (CSE: LUX) this morning announced that gold production has resumed. The company was forced to close its environmental remediation and gold production facility in Costa Rica as a result of an unavoidable COVID-19-imposed suspension of operations.
The bright side to the closure, is that management was able to utilize the closure to upgrade its production circuit. The facility was actually moved to a different site, adjacent to the currently in development second processing facility. The new location will enable a future increase in the scale of the project, while also being located closer to artisanal mines and tailings feedstock.
The result, is that the new location offers reduced transportation costs, while improving site security and project logistics, and facilitating further growth. Finally, the new location is now outside municipal limits, limiting risks associated with COVID-19 and improving safety of personnel.
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Once operations are fully scaled now that restart has begun, the facility is capable of processing 80 tonnes of material per day that grades above 9.0 grams per tonne gold. The facility is anticipated to have gold recoveries of 90%.
“We are excited to resume gold production at the first processing plant and have set a goal to achieve full production within the first half of 2021. Newlox Gold has also started development work on Plant 2, located at its recently announced Boston Project. Management looks forward to producing at Plant 2 shortly after Plant 1 achieves rated capacity. Additionally, Newlox Gold has multiple expansion projects under due-diligence, and we expect to announce our third project early next year.”
Ryan Jackson, President & CEO
Newlox Gold Ventures Corp last traded at $0.16 on the CSE.
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