Gold mine hires 140 workers as it eyes 'aggressive' exploration of rural Nova Scotia

A Canadian company based on theWest Coasthopes to strike it rich at a gold mining project in rural Nova Scotia.

Atlantic Gold Corp.of Vancouver is in the midst of creating a 30-hectareopen pit mine and the infrastructure to run it in Moose River Gold Mines, a community about 24 kilometressoutheast of Middle Musquodoboit.

The company has already hired 140 employees as part of itsTouquoy Gold Project one of four developments planned for the area.

"The date for putting the first ore into the plant is Sept.4and the process is relatively fast," said John Thomas, vice-president of projects for Atlantic Gold. "We should have gold to ship about 10days after that date."

The company began accessing a $115-million credit line last month. Workers are going seven days a week building the open pit, a mill site and a massive tailings management facility where a large dam is being constructed.

Three years ago, Atlantic Goldwon a dispute with a family in the Moose River Gold Mines area that didn't want to sell its land to make way for the project. The province eventually sided with the company and expropriated the land.

Company plans big expansion

Atlantic Gold plans to have four mining operations in the area over the next decade employing 350 workers.

Once the Touquoy project isopened, Atlantic Gold will start Phase 2of itsoperation at Beaver Damnear Sheet Harbour. The two projects are expected to yield 720,000 ounces of gold.

Gold bars will be produced on site and banks have already been lined up for purchases. The price of gold has dropped slightly since the U.S. election and isnow trading at more than $1,200 an ounce.

Hunting for more gold

Two other sites in the same region are also part of the overall plan. Projects at Cochrane Hill and Fifteen Mile Stream have already had test drilling done and core samples taken from those sites are being analyzed.

Results of those tests are expectednext summer and the company said ithopesestimates from thetwo sites will push thetotal from all four projectsto 1.2 millionounces of gold, which could translate into more than $1 billion if today's prices hold steady.

"To date it's the most aggressive exploration we've ever done," said Tim Bourque, senior project geologist with the company.

Economic impact

Economic activity in the area already appears to behaving a positive impact on businesses in the area. Reid's Restaurant and Bakery in nearby Middle Musquodoboitsaid it has seen a steady stream of patrons.

"It's kept us busy and steady instead of us having a slow phase," said Lorraine Decker, a waitress at Reid's. "It's nice knowing this mine is coming here to help build up our community."