Minnova plans to bring Manitoba's PL gold mine, shut since 1989, back into production in 2028 for C$76.2 million ($53.4 million). A new study shows about 62,200 ounces a year over 10 years, starting with open pits.
At a glance
- The mine already has a mill and infrastructure, which keeps upfront spending low.
- The study shows an eight-month payback at a gold price of $3,000 an ounce.
- A 20% fall in gold to $2,400 would cut the project's after-tax value to about $5 million.
Background
Restarting a mine that already has a mill and infrastructure can cost much less than building a new one. With gold far above the prices assumed in older studies, companies are re-examining deposits that once looked uneconomic. A preliminary economic assessment (PEA) is an early study of whether a mine could make money, not a final decision to build.
What happened
Minnova released a PEA on Wednesday for the PL gold mine near Sherridon, about 630 km northwest of Winnipeg, MINING.COM reported. The plan would cost C$76.2 million ($53.4 million) and restart production in 2028. It targets an average of 62,200 ounces of gold a year over 10 years.
The site, once called Puffy Lake, operated only from December 1987 to March 1989. "A high-grade open pit start, an existing mill and infrastructure and a modest capital requirement combine to deliver a short payback and strong returns," chief executive Gorden Glenn said.
Why the plan changed
Minnova now wants to start with open pits rather than going underground first. Surface ore could generate cash early, before the operation shifts underground. The open pits hold 268,091 ounces grading 5.28 grams per tonne, part of a wider measured and indicated resource of 601,158 ounces.
Higher gold prices also change the numbers. At $3,000 an ounce, the study shows an after-tax net present value of $180.6 million and a 111% internal rate of return. A 2017 study had assumed gold at $1,250 and planned about 46,500 ounces a year for five years, mostly from underground.
The risks
The returns are sensitive to price. All-in sustaining costs are estimated at $2,288 an ounce, and a 20% drop in gold to $2,400 would cut the after-tax value to about $5 million. The open pits also need about 21 tonnes of waste moved for every tonne of ore.
Investors were cautious. Minnova shares fell 3.2% to 15 Canadian cents, valuing the company at about C$19 million. It still needs amendments to its environmental licence, which currently covers only underground mining.
Our read
Outlook: neutral. A small restart adding about 62,200 ounces a year from 2028 does not affect global gold supply.
What to watch
- Minnova's prefeasibility study and further resource updates.
- Amendments to its environmental licence to allow open-pit mining.
- Plans to expand the mill from 1,000 to 2,000 tonnes a day in the second operating year.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-14: Minnova releases a PEA for restarting the PL gold mine in 2028.
Supply Drivers
High gold prices are reviving small past-producing mines that were uneconomic at $1,250 an ounce.
Mining Production
The restart would add about 62,200 ounces a year from 2028, using an existing mill.
What could lift prices
- Restart projects like PL show how strongly current gold prices support miners' economics.
- Small restarts add little to global supply.
What could weigh on prices
- Revived mines add new supply over time.
- All-in costs of $2,288 an ounce leave thin margins if gold falls.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Canada | Low | A long-idle Manitoba gold mine could restart in 2028. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Positive | High prices are making restarts of old mines worth studying again. |
Who gains, who loses
- Sherridon area: A restart would bring mining activity back to the region after decades.
- Minnova shareholders, near term: The shares fell 3.2% as investors weighed the project's price sensitivity.
Other ways this could play out
- If gold stays above $4,000, returns could far exceed the study's $3,000 case.
- If gold falls toward $2,400, the project's value would nearly disappear.
Price risks
- A sharp fall in gold prices would hurt the project's economics most.
- Permitting delays for open pits could push back the 2028 start.
Historical comparison
- 2017 feasibility study: It planned about 46,500 ounces a year for five years at a $1,250 gold price.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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