Canadian miner Minnova Corp. is preparing to revive its PL gold mine in Manitoba with a US$53.4 million pre-production investment plan that would see production resume in 2028, nearly four decades after the operation closed.

The project, located near Sherridon in northwestern Manitoba, would initially exploit high-grade surface deposits before expanding underground. A preliminary economic assessment released on October 14 estimates average annual production of 62,200 ounces of gold over a decade.

The restart will include rehabilitating the existing processing plant and developing an open-pit operation to supply ore during the early production years.

High-Grade Deposits Guide Mining Strategy

Minnova’s revised mining plan places greater emphasis on near-surface mineralization, changing the development sequence outlined in its previous feasibility study.

The company intends to begin extracting ore from open pits while preparing underground access. Underground mining is scheduled to begin during the first production year, with both methods operating simultaneously until surface extraction ends.

From 2031, the underground workings will become the sole source of mill feed.

A mineral resource update completed in September identified approximately 601,000 ounces of gold in the measured and indicated categories. The open-pit portion averages 5.28 grams of gold per tonne.

The estimate also includes inferred mineralization, while drilling has identified opportunities to investigate extensions beneath the existing deposits.

Minnova completed an extensive drilling campaign earlier this year, examining areas within the main deposit and along its strike. The company is planning further drilling to investigate deeper extensions of the PL deposit and the nearby Nokomis deposit.

Existing Infrastructure Supports Mine Restart

The PL property previously operated as the Puffy Lake gold mine between December 1987 and March 1989.

Much of the proposed development focuses on restoring the site’s processing facilities, where Minnova plans to refurbish mechanical and electrical equipment before increasing milling capacity.

The company intends to double the plant’s daily processing capacity during the second year of operations. Additional crushing and gravity recovery equipment would support the expansion as ore deliveries increase.

Preparatory work also includes open-pit stripping, improvements to water management systems, tailings infrastructure, and power generation.

Mining contractors would undertake extraction activities, allowing Minnova to avoid purchasing its own production fleet.

The initial surface operation nevertheless involves considerable waste removal, with approximately 21 tonnes of waste requiring excavation for every tonne of ore mined.

Mine Economics and Next Steps

At a gold price of US$3,000 per ounce, the preliminary assessment projects an after-tax net present value of US$180.6 million, using a 5% discount rate. All-in sustaining costs are estimated at US$2,288 per ounce.

The economic assessment also anticipates total life-of-mine capital spending of US$120.9 million, covering processing upgrades, underground ventilation, sustaining infrastructure, and mine closure.

The proposed restart remains at the preliminary assessment stage. Minnova must complete further metallurgical investigations, secure financing, and obtain the necessary regulatory approvals.

Its existing environmental licence covers underground mining, while the revised development proposal requires amendments for open-pit extraction and additional mine access.

Upcoming work includes further resource evaluation, contractor cost estimates, and prefeasibility and feasibility studies before the company can advance toward a production decision.