Galleon Gold CEO David Russell Provides Key Updates on West Cache Project

In a detailed webinar, David Russell, CEO of Galleon Gold, shared significant updates on the company’s flagship West Cache Project, located just 13 kilometers southwest of Timmins. As the project moves closer to production, Russell discussed its geology, exploration progress, permitting status, and the critical steps needed to bring the project to fruition.
“West Cache is poised to become the next major gold mine in Timmins,” Russell declared, emphasizing the company’s focus on delivering a robust feasibility study and securing permits to begin bulk sampling by late 2025.
Project Overview
The West Cache Project spans 10,500 hectares and lies strategically between historic mining giants such as Hollinger, McIntyre, and the Timmins West Mine. Though no mine has ever operated on the property, the project boasts a 1.56 million-ounce gold resource, with additional potential to increase resources through continued exploration.
Russell noted the project’s favorable location within Ontario’s Abitibi Greenstone Belt, one of the world’s most prolific gold-producing regions, and highlighted ongoing efforts to de-risk the project.
Key Milestones and Next Steps
Russell provided a comprehensive overview of the company’s progress and outlined the path forward:
• Bulk Sample Development:
The company plans to extract an 86,000-ton bulk sample from the Number 9 Zone, a high-grade quartz-feldspar porphyry structure. Initial grades are expected to average 7.2 grams per tonne (g/t) after dilution.
• Permitting Progress:
Galleon Gold has submitted all necessary documentation to Ontario’s Ministry of Mines and has completed consultations with five First Nations groups, including Flying Post, Matachewan, and Métis communities. “We’re now waiting for final approval to post our bond and begin development,” said Russell.
• Economic Viability:
The project’s preliminary economic assessment (PEA) assumes a gold price of $1,700/oz, yielding a pre-tax net present value (NPV) of $378 million and a 26% internal rate of return (IRR). At current gold prices near $2,700/oz, the NPV could soar to over $1.2 billion, with an IRR exceeding 64%.
• Production Timeline:
Initial gold shipments are expected by late 2025, with full production ramping up in 2026. The project’s estimated mine life is 11 years based solely on underground resources.
Infrastructure and Milling Options
Galleon Gold has developed a flexible processing strategy to leverage Timmins’ established infrastructure. The company is evaluating multiple custom milling options, including Pan American Silver’s Bell Creek mill and Glencore’s Kidd Creek facility, among others.
“We don’t plan to build a mill initially,” Russell explained. “Instead, we’ll ship ore to local mills to optimize costs and ensure timely gold recovery.”
Exploration Upside
Russell emphasized the “blue-sky potential” of West Cache, noting that only 10% of the property has been drilled to date. Recent discoveries in the South Zone and Far East Zone suggest significant resource expansion opportunities, potentially pushing the resource base beyond 2 million ounces.
“We’re confident we can add 500,000 to 1 million ounces over the next few years,” Russell stated.
Challenges and Opportunities
Addressing investor questions, Russell acknowledged the challenges of permitting and financing but expressed confidence in the company’s ability to overcome these hurdles.
• Permitting Delays:
While the permitting process has taken longer than anticipated, Russell credited Ontario’s regulatory framework for ensuring a thorough and transparent process.
• Financing Plans:
Galleon Gold is exploring multiple funding avenues, including forward sales, off-take agreements, and partnerships with major mining companies. “We have enough cash to fund the bond and initial development,” Russell confirmed.
Strong Community and First Nations Support
Russell highlighted the project’s strong local backing, including support from five First Nations groups. “We’ve built positive relationships with local communities, and we’re committed to ongoing consultation throughout the project’s lifecycle,” he said.
Leadership and Expertise
Russell credited the project’s progress to Galleon Gold’s experienced team, including General Manager Ryan Loheed, who previously helped bring the Black Fox Mine into production. “We’ve done this before, and we know how to build a mine efficiently and responsibly,” Russell remarked.
A Bright Future for West Cache
As the webinar concluded, Russell expressed optimism about West Cache’s future, calling it a “game-changer for the Timmins mining camp.”
“With strong economics, a top-notch team, and a clear path to production, West Cache is set to deliver tremendous value for our shareholders and the community,” he said.
Galleon Gold is now poised to make significant strides in turning West Cache into one of Ontario’s next premier gold mines.
By Kevin Vincent, Senior Contributing Editor to Mining Life Online and Mining Life & Exploration News
Tags: Northern Ontario / Operational Updates / Gold / All Articles