Sixty North spends $6.2M since 2017 on Mon development

Executive Summary

• Sixty North Gold Mining Ltd. provided a detailed operational update regarding the development of its Mon gold mine, outlining historical expenditures, current development progress, and future production plans.
• The company has invested $6.2 million since 2017, with $3.6 million allocated to exploration and development, including equipment and labor.
• Future plans include accessing the A-zone quartz veins, installing a 100-tonne-per-day mill in spring 2026, and scaling up labor for full production operations.

Key Details

• Historical Expenditures: Total investment of $6.2 million since 2017, comprising:
  • $2.6 million in acquisition costs.
  • $3.6 million in exploration and development costs, broken down as:
    • $427,540 in recoverable reclamation bonds.
    • $900,000 on mining and operations equipment.
    • $2.2 million on development labour and consumables.
• Development Progress:
  • 226 metres of development completed, including portal repair, ramp slashing/advancing, crosscut drives, and service installation.
  • Successfully accessed the A-zone quartz veins below two historic stopes.
  • Historic stopes extracted 112 metres of strike length; each 15m elevation yielded 15,000 tonnes of ore at a reconciled grade of 30 g/t gold (1,000 oz gold per vertical metre).
• Operational Costs (2024):
  • Direct operating costs: $10,000 per day or $4,800 per metre advanced.
  • Cost per tonne of rock extracted in development: $143.
  • Staffing basis: Two miners (single shift), mine manager, geologist, mechanic, and support staff.
• Future Production Plans (2026):
  • Plan to subdrift north and south on both east and west limbs of the A-zone for a total of 137m of the quartz vein (16m and 18m below existing stopes).
  • Extraction method: Mechanized resue method in four stopes to minimize dilution and maximize extraction.
  • Target recovery: Approximately 20,000 tonnes of A-zone vein.
  • Cost expectation: Initially similar to previous costs, potentially reducing as more vein characteristics are revealed.
• Mill and Capital Requirements:
  • Sourced a 100-tonne-per-day mill.
  • Acquisition, transportation, and installation planned for spring 2026.
  • Capital costs quoted at approximately $1 million.
  • Additional $344,564 in environmental bonding required prior to mill installation and operation.
• Full Production Staffing and Costs:
  • Additional crew needed: Second two-man mining crew, two mill operators, two support crew, and an additional mechanic.
  • Labor cost increase: 50% increase to approximately $15,000 per day.
  • Consumables (fuel/explosives) increase: To nearly $5,000 per day.
• Technical Reporting Status:
  • No National Instrument 43-101 technical report recommending a decision to proceed to production has been completed or is contemplated at this time.
  • Reference to previous 1990s production: 15,000 ounces of gold extracted from 15,000 tonnes of ore without a feasibility study or reserve report.
  • Warning issued regarding increased uncertainty and economic/technical risks associated with production decisions lacking a feasibility study.

Notable Quotes

• "Dr. D.R. Webb, PhD, PGeol, PEng, president and chief executive officer of the company, is the qualified person for this release, and has reviewed and approved of its technical content."