Nuvau Minerals (TSXV:NMC) has successfully closed the acquisition of its flagship Matagami property from Glencore (LSE:GLEN,OTCPL:GLCNF) and is now preparing to restart production. President and CEO Peter van Alphen said the company will focus on de-risking and ongoing technical work to update the preliminary economic assessment (PEA) to include the past-producing Bracemac-McLeod mine.
The Matagami mining camp is a 1,379 square kilometre exploration and mining property. It is regarded as one of the largest, most strategically located and prolific geologic environments for critical and precious metals in Québec, Canada.
“The interesting thing with that property is we sit between two major structures in the northern part of Abitibi with a massive land package, almost 1,400 square kilometers, and it's never actually been actively explored for gold,” Alphen shared, noting that the company has already made two gold discoveries.
Finance-wise, the company used the first tranche of C$14 million for the transaction with Glencore and technical work, while the second tranche is intended for both base metals and gold exploration. The company also retains its 24 month right to acquire the mill at Matagami for C$5 million.
With about 10.5 million metric tons of defined resources and more expected, Alphen believes there is no need to justify production to spend the company’s C$400 million capital, creating a clearer path to restarting operations.
Watch the full interview with Nuvau Minerals President and CEO Peter van Alphen above.
