Doug Ashbury
Northern News Services

NNSL (Nov 03/99) - After lying dormant for two years, the Lupin gold mine in Nunavut will be re-opened in the new year, Echo Bay Mines revealed.

Colorado-based Echo Bay Mines, which owns Lupin, made the announcement Tuesday. Company directors believe gold has found a new trading level around $290 US an ounce. With a re-engineering project, Lupin can produce gold at $245 US and ounce.

Recommissioning the mine means dozens of jobs. Echo Bay spokesperson Robbin Lee said Tuesday that operating the mine takes a staff of 325 people. Currently, there are about 35 people keeping the mine running on care and maintenance.

Echo Bay will be flying employees to and from the mine on a two-week rotation from Edmonton, Yellowknife, Cambridge Bay and Kugluktuk.

"We feel this is good news for the town and the territories," Steve Petersen, Canadian Auto Workers Local 2304 plant chair, said.

News of Lupin comes as Giant Mine workers are losing their jobs.

"We're hoping some of our guys can get on there," Petersen said.

Petersen estimated 30 or 40 Local 2304 members sent resumes to Echo Bay.

Petersen also said Echo Bay will likely hold an information session at the union hall soon.

Gold production at Lupin is expected in April.