Minnova to study PL gold mine expansion to 2,000 tpd

Executive Summary

• Minnova Corp. has initiated a strategic expansion to double the PL gold mine's processing capacity from 1,000 tonnes per day (tpd) to 2,000 tpd, leveraging existing infrastructure to enhance project economics in a high gold price environment.
• The company has directed A&B Global Mining to conduct a Technical Audit and Capacity Analysis (TACA) to verify if existing crushing infrastructure can support the increased throughput.
• Concurrently, the Board approved a stock option grant of 2.5 million options to directors, officers, employees, and consultants, exercisable at $0.20 per share.

Key Details

• Expansion Target: The initiative aims to increase Run-of-Mine (ROM) throughput to a minimum of 2,000 tpd via open pit mining methods.
• Technical Audit (TACA): A&B Global Mining is evaluating:
  • Crushing Audit: Verifying if existing Traylor Jaw and Symons Short Head Cone crushers can sustain rates for 2,000 tpd.
  • Motor/Drive Review: Assessing the 100 HP jaw crusher motor and 150 HP cone crusher motor for increased load capacity.
  • Choke Point Identification: Evaluating dust collection, ore chutes, and transfer point capacities.
  • Power Requirements: Assessing motor control centers and transformers for higher throughput.
• Infrastructure Redesign: If TACA confirms capacity, the plan involves duplicating specific components in parallel with existing infrastructure, including:
  • Fine ore storage capacity.
  • Ore conveyor systems.
  • Milling, gravity, flotation, and concentrate leaching processes.
  • Merrill-Crowe gold recovery circuit.
• Strategic Context: The expansion prioritizes lower-cost open pit mining for initial production before transitioning to underground mining, aiming to reduce operating costs compared to the previous underground-only model.
• Feasibility Timeline: A revised mine development plan is under way, with a Preliminary Economic Assessment (PEA) and Feasibility Study targeted for completion in 2026.
• Resource Update: The mineral resource estimate will be revised in 2026 using current gold price assumptions and will incorporate results from a 15,000-metre drill program currently in progress.
• Option Grant Details:
  • Quantity: 2.5 million options.
  • Exercise Price: $0.20 per common share.
  • Term: Five years.
  • Vesting: Immediate.
  • Hold Period: Four months from the date of grant.
  • Recipients: Certain directors, officers, employees, and consultants.

Notable Quotes

• "By doubling the processing plant ROM throughput capacity, Minnova aims to leverage existing infrastructure and dramatically enhance the project's economics in the current high gold price environment."
• "The successful restart of the PL gold mine at a targeted 2,000 tpd throughput rate from open mining operations will position Minnova as a more significant gold producer, providing a robust operational foundation for the eventual transition to underground mining operations."