The company had previously planned to stay the course and keep operating its environmental remediation and gold production facility to protect people's livelihoods but then faced an "unavoidable" suspension.

Newlox said it used the time to relocate Plant 1 on newly-acquired ground next to its Boston project and upgrade the production circuit.

It said the plant had a rated capacity of 80 tonnes per day of material grading plus-9g/t gold with an anticipated gold recovery of about 90%.

The company said the new, larger site also accommodated its enhanced laboratory and basecamp and was closer to artisanal mines and sources of tailings feedstock.

"We are excited to resume gold production at the first processing plant and have set a goal to achieve full production within the first half of 2021," president and CEO Ryan Jackson said.

He said the company had also started development work on Plant 2 at Boston and planned to start producing there once Plant 1 achieved rated capacity.

"Additionally, Newlox Gold has multiple expansion projects under due diligence, and we expect to announce our third project early next year," Jackson said.

Newlox reported having C$265,775 in cash at June 30, a working capital deficiency of almost $1 million and shareholders' deficit of about $956,000.

It had raised C$442,500 at 5c per unit earlier in June.

Its shares (CSE: LUX) are trading near the upper end of a one-year range and gained 6.25% on Friday to close at 17c, capitalising it at $16 million (US$12 million).