Mining Journal – Newlox to ‘stay the course’ and produce doré
April 7, 2020 – Junior gold producer Newlox Gold Ventures (CSE: LUX) said it had decided to continue producing doré at its Ora Roca plant in Costa Rica to protect people’s livelihoods in the face of the COVID-19 pandemic.
The company describes itself as an environmental remediation company, receiving tailings from artisanal mining and selling precious metals at a discount of 3% or less from the spot gold price. It started commercial operations at Ora Roca in June 2019 and said gold production had continued uninterrupted.
“In these trying times, it is important for Newlox to continue its work,” president Ryan Jackson said. “The COVID-19 pandemic is not only causing physical harm to people’s health but is also harming their livelihoods.”
He said the plant had an open-air format and was “ideally suited” to physical distancing while at work. “Therefore, we have decided to stay the course and continue to support our employees, stakeholders, and investors,” he said.
Newlox outlined plans in March for a second mill.
It said it had signed a letter of intent with a local artisanal gold mining group, with Newlox to design, construct and deploy a mercury-free milling facility to provide social, environmental, and economic benefits to all stakeholders in the region.
Newlox reported sales of C$307,648 in the nine months to December 31. It had $32,944 in cash and a working capital deficiency of $942,835 at the end of 2019, according to its latest MD&A filed in March.
Its shares have ranged from 3c-11c over the past year and last traded at 4c, capitalising it at $3.1 million (US$2.2 million).
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