Kaminak Gold Corp.said May 5 that its board has approved a C$29 million budget for 2016 developmentwork at its Coffeegold project in Canada's Yukon Territory, covering environmental baseline, permittingand exploration activities.
The company decided to moveforward with the project's development, with construction planned formid-2018, after a feasibility study on Coffee indicated an economically viable openpit mining and heap leach project.
About 48% of the 2016 budget, or approximately C$14 million,has been allocated to the project's permitting process; 21% or C$6.2 million willbe spent on pre-development/advanced engineering; up to C$5.1 million on furtherexploration; and about C$3.7 million on corporate general and administrative expenses.
Kaminak plans to continue collecting environmental and baselinedata to support Coffee project's permitting, which is expected to start early inthe third quarter. With construction targeted to begin in mid-2018, the companyaims to secure all the permits by the second quarter of 2018.
The miner has also mobilized field crews to the project for explorationdrilling that is expected to start in the coming weeks, focused on testing new targetsthat have never been drilled before. Kaminak will also carry out follow up expansiondrilling on previously drilled discoveries.
Kaminak's C$5.1 million exploration plans for the project thisyear will be carried out in phases, starting with a C$2.6 million program that includessoil sampling, mapping, trenching and drilling. The second phase of explorationwill depend upon results of the first phase.
The company also said that all warrants issued as part of a in October 2015 have beenexercised, fetching C$14.4 million for the miner, which will be used for generalworking capital and the phase two exploration program at Coffee.
Following the exercise of the warrants, Kaminak has a cash positionof about C$33 million and expects to end the current fiscal year with a cash balanceof approximately C$9 million.