Full Mining Fleet Now In Operation At Manh Choh
FAIRBANKS, AK - Contango ORE, Inc. reported that its 30% owned Manh Choh project, operated by a subsidiary of Kinross Gold Corporation is on track for first production in early Q3 2024. Ore and waste mining are ongoing with the full mining fleet now in operation as planned. Following several months of orientation runs, transportation of ore to the Kinross Fort Knox mine, where the ore will be processed, continues to ramp up with all contracted trucks received, the majority of the drivers onboarded, and trailer manufacturing now complete.
At Fort Knox, mill modifications and site preparation remain on plan, including the completion of the ore delivery road and tie-ins for the pebble recycle conveyor. Building construction is advancing well, along with interior piping and electrical works.
Rick Van Nieuwenhuyse, President and CEO commented, “We are very pleased with the progress made by Kinross at Manh Choh as the gold market tests new highs. First gold production from Manh Choh ores will be a huge milestone for Contango and the project. It demonstrates that new mines can be permitted and constructed in a timely manner when we are able to take advantage of existing infrastructure such as the Fort Knox mill, which has operated for 30 years without significant issue. Achieving this milestone validates Contango’s business model in identifying projects that meet three main criteria: 1) access to infrastructure (roads, rail and water); 2) sufficient grade to be able to pay for transportation to an existing mill facility, several of which are in Alaska and several along the coast of British Columbia; and 3) represent a simple project from a permitting viewpoint. Our Manh Choh and Lucky Shot projects meet these criteria as does our recently announced proposed transaction with HighGold and their Johnson Tract project, which is also located in Alaska. In approaching project development in this manner, we reduce the environmental footprint, permitting timelines and our capital commitments, all of which result in better returns for shareholders and stakeholders alike.”