The feasibility study for the Bateman gold project, in the Red Lake gold mining camp, has demonstrated the shovel-ready project’s commercial viability, with an after-tax internal rate of return of 50.3% and a C$305-million net present value.

The maiden feasibility study, results of which were announced on Wednesday, estimates that C$109.3-million will be required for the mine, which will produce 73 835 oz/y over an 8.2-year mine life at a C1 cash cost and all-in sustaining cost of $613/oz and $865/oz, respectively.

“There are few stand-along projects in the world that are as substantially de-risked, with significant infrastructure, with a short timeline to initial production, in a safe jurisdiction, as the Bateman gold project. The feasibility study reflects a purposeful focus on rigor and prudence as the foundation for the prospective construction and operation of the project,” said CEO George Ogilvie.

The ramp-up period is an estimated 21 months to commercial production and initial production is expected to start about seven months after construction gets under way.

Battle North has started the development planning for Bateman, including a risk assessment, Ogilvie said.

“We have strategies in place to mitigate ramp-up risks including targeting capital development of at least nine months ahead of the mine plan, infill drilling the F2 gold deposit to 10 m drill centres, creating ramp access to increase shaft capacity, and installing an ammonia reactor in the wastewater treatment plant before operating the mill.

“Most importantly, we have an operating team with extensive experience in building, operating and turning around underground mines; the collective operating experience of the Battle North team will be a significant factor in ultimately achieving a successful ramp-up to commercial production."

Battle North has C$55-million cash on its balance sheet that is dedicated to fund the development capital of the project. The company is also in advanced discussions with lenders to secure a debt facility to fund the remaining development capital and achieve a fully-funded project.