Gold Terra Drills Historic Con Mine Aiming for Economic Revival

Gold Terra Resource Corp. is making significant strides in reviving the historic Con Mine in Yellowknife, Northwest Territories. The company has three drilling rigs active on the site, funded by a recent C$10.1 million financing. The Yellowknife Project hosts a combined 1.925 million ounces of gold, including 103,000 ounces in the Indicated category and 1.822 million ounces in the Inferred category. Gold Terra aims to complete a preliminary economic assessment (PEA) by the end of the year.

The Con Mine, which produced 6.1 million ounces of gold from 1938 to 2003, is a brownfield site with existing infrastructure, including a mining lease, a 1,950-metre shaft, and a water treatment plant. The site's location provides access to hydro power, all-season roads, and a skilled workforce. Gerald Panneton, Chairman & CEO of Gold Terra, emphasized the value of the existing infrastructure, stating that the company could save up to C$200 million by utilizing the Con Mine's resources.

Gold Terra has spent C$20 million over the last five years discovering the 1.925 million ounces of gold. The company's drilling programs have yielded high-grade intervals, such as hole GTY26-001, which returned 8.20 grams per tonne gold over 20.4 metres. The company is also testing historic tailings facilities for potential gold recovery, with a sonic drilling program already underway.

The economics of gold mining have significantly improved since the Con Mine's closure in 2003. With gold prices more than doubling over the past five years, the company's break-even point is around US$2,000 per ounce. Panneton highlighted the strategic optionality of the company's wholly owned deposits north of Yellowknife, including Crestaurum, Sam Otto, Walsh Lake, and Barney, which add scale to the project.