Company a step closer to approval for gold mine near Buchans

A gold mining company is making steps toward approval for a new operation just south of Buchans in central Newfoundland.

The Marathon Gold Corporation, based out of Toronto, says it's found four million ounces of gold in a deposit in the ground.

"We've just completed a preliminary economic assessment which demonstrates that there is the potential for a large gold mining operation on our property and we're looking at production of about 225,000 ounces a year for 12 years," says Phil Walford, president and CEO of Marathon Gold.

"That puts us in one of the top mines in Canada, as far as gold goes, and certainly as far as that goes in the U.S. as well."

Walford said the company has put its proposal to the province's environmental review department for an assessment the next step in getting approval for the project.

The company should know by the end of May whether or not the proposal is approved, or if they need to go back to the drawing board.

"It was really a significant deposit, it was one that a lot of people doubted would be found on the island," Walford told CBC Newfoundland Morning.

"I think we've demonstrated the island of Newfoundland can host a world-class gold deposit."

Could employ 400 people

If it does get approved, Walford said this kind of mine would employ about 400 people 200 per shift, on a rotation basis.

"There's a lot of people that would be drawn from the area, a lot of goods and services too that would come into play," he said.

"It would really replace Duck Pond as a major economic stimulus."

Since purchasing the land in 2010 the company has spent more than $2 million maintaining an old forestry road from Milltown to the location where the mind would be, Walford said.

"From a safety factor, as well as supplies and keeping costs down, it's really good."

There are still a number of phases to get through before the company could look at construction, Walford said.

I think we've demonstrated the island of Newfoundland can host a world-class gold deposit.- Phil Walford

If the proposal is approved by the end of next month, the construction phase wouldn't start for another three years, he guessed.

"There's a lot of work to do yet," he said.

"It's pretty exciting. It's been a long haul, we started this project in 2010 and so it's ... these things take time."

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