From Exploration to Development: A Conversation with a Gold X2 Representative

About halfway between the city of Thunder Bay and our town of Atikokan, only a few kilometres from the height of land, lives the village of Kashabowie, just up the north-bound highway 802. South from Kashabowie, past Burchell Lake and near Snodgrass Lake one arrives at the site of the Moss Gold Deposit, the mining rights of which are owned by a company that readers of the Progress have become familiar with: GoldX2. Their operational headquarters: a warehouse in Kashabowie leased from the local lodge owner.

{Geologists test Ore samples in GoldX2's Operational Headquarters}

Last week, this reporter had the opportunity to speak with Gold X2’s Manager of Community and Partner Engagement, Ryan Tuomi, inside their Kashabowie Core Shack, where samples of drilled ore are studied and graded. Tuomi had just returned from the Prospectors and Developers Association of Canada (PDAC) conference in Toronto, along with several other executives and employees.

“We're definitely in a boom”, he said, commenting on the energy and excitement at the conference; according to organizers, there were 32,155 participants who arrived at the Metro Toronto Convention Centre, the largest attendance in the event’s 94-year history. “Mining is becoming mainstream talk, when it hasn't been in a long time”.

GoldX2 (then known as Goldshore) began work here in 2021, after purchasing 14,292 hectares of mining claims and patents surrounding Snodgrass Lake from Wesdome Gold Mines. The Moss deposit had long been of interest to prospectors, drilled and tested several times since the 1980’s. The problem for Wesdome, Tuomi explained, was the type of deposit: high in volume, but low in grade. What this means is that, although the total amount of gold is potentially extraordinary, the deposit is spread throughout a large geographic area, and not richly concentrated. With the price of gold sitting at a little over $1,000/oz USD in 2017, Wesdome preferred to focus on higher grade projects. That year, they ceased operations at Moss, and eventually sold their claims to GoldX2.

“It was serendipitous good luck”, said Tuomi, in reference to their timing. The current price of gold has risen 200% since the company acquired mining rights, helping to attract investment from significant financial backers, and form partnerships with industry leaders such as Anglo Gold Ashanti. They also stand to benefit from the convenient, reliable power made available by the Waasigan Transmission Project.

In January, the company released their preliminary economic assessment (PEA). One highlight was the announcement that, based on official estimates, Moss has the potential of becoming a top ten producing mine in Canada.

“Until this PEA, we didn't know we had something to talk about”, said Tuomi, explaining how the study has transformed their outlook from ‘what-if’s’ to a concrete plan forward. Their name change (Goldshore Resources to Gold X2 Mining) was meant to symbolize the paradigm shift, transitioning from an exploration to a development company. Based on the current timeline, the Moss Gold project will enter its feasibility stage in mid-to-late 2027, where various aspects will be analyzed in fine detail, such as detailed engineering, metallurgy (gold extraction process), and site design.

The company is expecting to hire up to 700 workers during construction phase, and thereafter employ up to 400 full-time, permanent workers throughout the operational life of the mine. Their economic ambitions, however, go beyond employment. “We want to be the anchor for regional development in the area”, said Tuomi, articulating the company's commitment to support surrounding First Nations and communities, such as Atikokan. The culture of GoldX2, Tuomi said, has been crafted by a leadership team that hopes the project will serve as a prototype for “the way to build a mine in Canada”, socially, economically, and environmentally.

Since preliminary work began in 2021, they have completed dozens of studies which will collectively inform their upcoming environmental Impact Assessment (IA). When asked about possible effects on nearby lakes, Tuomi responded strongly: “We will not allow water to leave our site dirtier than what it was before”. They are now in the beginning stages of reaching out to communities and stakeholders around the project with a goal of hearing from everyone.

 In regard to the ‘gold rush’ feeling that inevitably arises during ‘boom’ times, Tuomi issued caution about getting too excited. Currently, Gold X2 employs about 30 people, and has a series of  steps to complete in the next few years before operations can be considered. The price of gold can also impact employment and timeline projections; in 2023, they issued layoffs due in part to price fluctuations. But following the PEA, the company has entered a new era. “We did a good job getting here. Now it's time to do the real work. We have been quiet, until now”, said Tuomi.

Despite hesitancy towards issuing lofty expectations, the ‘buzz’, or concentration of excitable energies, was certainly tangibly strong within the Core Shack. For those interested in learning more about the project or looking to form a relationship of any kind with the company, Tuomi is open to discussion. He can be contacted at rtuomi@goldx2.com.