Galane Gold Ltd. (TSXV:GG) has commissioned and installed a new SAG motor mill and repaired its faulty motor mill to be stored on site as a spare. The new motor will replace one that previously failed in May 2014.
As quoted in the press release:
The Company’s insurance providers have agreed to cover certain losses incurred by the Company in connection with the mill motor failure under its business interruption insurance policy. The full settlement amount has still to be agreed but an interim payment of $800,000 has been confirmed.
Galane Gold chairman and acting CEO, Ravi Sood, said:
The failure of our SAG mill motor was a disappointing short-term setback amidst a series of material long-term improvements. However, the Company actively managed the situation to minimise losses, demonstrating management’s capability and creativity. With the new mill motor in place we are in a strong position to meet our financial and production targets for the year.