Miramar to process ore until late 2001
Doug Ashbury
Northern News Services
Yellowknife (Nov 08/00) - Over the years, miners have said Giant mine's motherlode has yet to be found.
If there is one to be found, current company projections suggest that unless something happens soon, the question will not be answered.
"We expect Giant to continue delivering ore for processing at the Con mill through to the third quarter of 2001," Miramar Mining said in a third-quarter update released last Thursday.
If the processing of Giant ore stops, it will end over half a century of production. The first gold brick was poured in 1948.
Miramar said it has been getting disappointing mineral grades at Giant, which has led to a complete overhaul of the mine plan. The new plan targeted ores with minimal development requirements and low reserve risk.
The changes also meant laying off 15 workers, or 20 per cent, of the Giant workforce.
For the third quarter ended Sept. 30, Giant produced 24,799 tons of ore grading .26 ounces of gold per ton for 5,455 ounces of gold.
Con operations produced 74,067 tons grading .37 ounces per ton for 24,531 ounces of gold.
Overall, Vancouver-based Miramar reports 29,986 ounces of gold produced in third quarter at cash cost of $260 US an ounce, after 30,060 at $269 US per ounce in the previous quarter.
For third quarter 1999, 19,488 ounces of gold were produced at $269 US an ounce.
Over the first three quarters, Miramar's gold production cost per ounce is above the spot price. During the first nine months of 2000, Miramar produced 86,206 ounces at a cash cost of $270 US an ounce.
Friday's afternoon gold fix was $264.65 US.
"Given the current commodity prices, our Yellowknife operations continue to focus on cost reductions and improved cash-cost performance. This effort will continue and our Yellowknife operations should remain cash neutral at these prices," said Miramar president and CEO Tony Walsh in a release.
A year ago, gold shot from $255 in mid-September to $326 in just a few weeks.
But, except for a short-lived rally in February and another in summer, the commodity's price has gradually declined.
Miramar projects 120,000 ounces of gold from its two mines with average annual cash costs expected to be $265 US an ounce.
"Our objective remains to keep our Yellowknife operations at least cash neutral on a total expenditure basis while gradually eliminating the environmental liability at the Con mine. We are on track to achieve that objective," added Walsh.
