Yellowknife (Aug 29/03) - Between 190 and 200 unionized and non-union workers at the Con Mine will lose their jobs by Nov. 30.

Con Mine opened in 1938. Giant mine opened 10 years later. During its lifetime, Con has produced more than 5.5 million ounces of gold. The landmark Robertson Shaft opened in 1977. Workings eventually extended over more than one mile of strike and to depths of 6,400 feet. The mine currently has 250 employees; 60 will remain on site after Nov. 30. With the closure, the company expects total gold production of 80,000-90,000 ounces in 2003, 35,000-40,000 ounces in 2004 and 20,000-25,000 ounces in 2005.

The decision was announced Wednesday after mine owners, Vancouver-based Miramar Mining Corporation, announced a $7.4-million loss between April 1 and June 30.

The ore just isn't there any more, said Miramar president and CEO Tony Walsh.

Both Walsh and Miramar's senior vice-president of operations, Bill Labadie, left little hope that the possibility of a lower Canadian dollar and higher gold prices could change their minds.

"We don't see that happening. Our cash costs are $445 an ounce ... we don't see that scenario going down," said Walsh.

"The Con Mine is over, it's done," added Labadie.

In September 2000, Miramar proclaimed a cash cost of US$269 per ounce.

Since then, the company's per-ounce costs have risen 165 per cent, as gold in the mine thinned out and the Canadian dollar bounced higher.

The higher Canadian dollar has affected their bottom line by 20 per cent, Walsh said.

"But it's primarily due to the fact that we're getting to the end of the mine's life," he explained.

Walsh did admit some workers were jolted with the decision.

"It's like anything when you're faced with a final decision -- it's a shock. It was no secret it was coming to the end of its life. We made it very clear the mine would shut down at the end of 2004."

Payroll at Con Mine is $1 million a month, compared to $221,000 a month at Giant.

Cleanup addressed

The Miramar executives added they are aware of concerns over reclamation.

"It's one of the issues people always ask: Is there money for reclamation and clean up? The Mackenzie Valley Water Board asked for $9 million and we put down $10 million through the sale of our Bluefish Power Plant ... we're satisfied we've met our obligation on reclamation," said Walsh.

When asked whether Yellowknife might be losing a big chunk of its population, Labadie said it was difficult to predict.

"They are skilled employees and skilled trades people," he said.

"Things are picking up in the mining industry and I would assume there would be a number of opportunities for the employees to go to diamond mines and operations elsewhere in Canada."

The severance package with hourly workers has already been negotiated within their collective agreement.

"For the rest of the staff, we will be offering the industry standard. It depends on the nature of the job and how long they have been employed," Walsh said. "It had a great run, but it has run out of ore."