PERTH (miningweekly.com) – TSX-V and ASX-listed Atlantic Gold on Friday revealed that its Moose River consolidated gold projects, in Nova Scotia, could generate as much as $162.3-million in benefits to the Canadian economy, and could employ as many as 1 749 staff during its construction phase.

Atlantic revealed the results of an economic impact study on the Moose River consolidated projects, which include the Touquoy, Cochrante Hill and Beaver Dam deposits.

A September preliminary economic analysis of the projects outlined two potential development scenarios, with the base case focused on the initial development and production at the fully permitted Touquoy project, followed by production from Beaver Dam – a satellite operation – in year five.

The base-plus-Cochrane case would add production from the Cochrane Hill deposit in year three. In this production scenario, Cochrane Hill would be a largely independent and self-contained operation, unlike Beaver Hill. The mine would supply gravity and float concentrate to the Touquoy facility.

Under the base case scenario, production would come to about 702 000 oz of gold over the mine life, or an average of 87 700 oz/y, while the base-plus-Cochrane case would produce 1.13-million ounces over the mine life, equating to 141 000 oz/y.

The economic impact statement revealed that the base-case production scenario could deliver $93-million in economic benefits to Canada, with some $69.3-million direct benefits to the economy of Nova Scotia. The base case employment figure has been estimated at 1 005 staff during construction and 278 staff during operations.

The base-plus-Cochrane case estimated that the project could deliver $162.3-million of economic benefits to Canada, of which $120-million would go directly to the province of Nova Scotia, while some 1 749 staff would be employed during the construction phase and 1 352 staff during operations.

“The results of the economic impact study reinforce management's view that the planned construction and subsequent operation of Atlantic’s Moose River consolidated gold projects will benefit local stakeholders, including, but not limited to the province of Nova Scotia,” said Atlantic chairperson and CEO Steven Dean.

“Furthermore, the company believes that the reported value added to the provincial and federal economies has potential upside in the event current and future acquisitions and exploration activities uncover additional resources to add to the already-robust economics of the Touquoy, Beaver Dam and Cochrane Hill deposits.”

Dean noted that Atlantic would be completing its analysis on the recent resource definition drill programme at Beaver Dam, which was expected to contribute to the feasibility study on the base case scenario. The company would also continue with its financing negotiations.