Orefinders Resources has started production activities at the Mirado Mine Stockpile project in Canada.
The company already mobilised earthmoving, crushing, conveyor and loading equipment onto site and confirmed that crushing activities have now started.
A crushing production rate of around 1,500 to 2,000t per day is expected.
Later on, shipment of the resource will begin to the Westwood Mine and Mill after crushing to avoid any delays with trucking.
Orefinders signed a toll milling agreement in July this year to deliver a minimum 25,000t of resource from the Mirado to the Westwood Gold Mine for processing, as well as extraction.
The company intends Phase I of the Mirado Stockpile project as a means of cleaning up the former mine site and generating cash-flow for its ongoing exploration and development.
Phase I is a resource that was blasted and mined from the Mirado mine during its production during in the 1980s.
Last month, Orefinders received final approval from Ontario's Ministry of Northern Development and Mines for the Mirado Phase I project.
Phase I is now completely permitted and financed.
Prior to this, the company signed an agreement with Excalibur Resources and Inflection Capital to provide the funding necessary to commence its project.
Use of proceeds from the deals will go towards processing costs including deposits to the milling and trucking contractors.