Junior Canadian oil and gas company close to start up of cryptocurrency mining pilot

Montney-focused junior oil and gas producer Iron Bridge Resources says that it is about a month and a half away from starting up a new cryptocurrency mining pilot.

Company subsidiary Iron Chain Technology Corp. invested approximately $25,000 in data mining gear and approximately $24,000 on related advisory services during the first quarter.

The pilot project is located at Iron Bridge’s Gold Creek battery in northeast B.C.

Cryptocurrency mining equipment and a fit-for-purpose containerized facility is expected to be powered-up and operational near the end of the second quarter, the company said this week.

Iron Chain was launched in January amid slumping natural gas prices. The company, which generates electricity from its own natural gas production, said it would benefit from some of the lowest cost power in the world.

“We burn it with our own generators and use that power to fire the cyptocurrency mining operation,” Rob Colcleugh, Iron Bridge Resources chief executive officer, told JWN in January. “We essentially have almost no cost for our power.”

Progress updates on the pilot will be provided as they become available.

Iron Bridge reported a net loss of $1.15 million in the first quarter of 2018, improved from its $3.62 million net loss in the first quarter of 2017.