Expansion plans have been approved for the Dome and Detour Lake gold mines in northern Ontario.
The Canadian unit of Placer Dome (TSE) plans to spend $150 million to increase production and lower costs at the Dome mine in Timmins. And at Detour Lake, 300 km due north, $10 million will be used to extend the mine life.
Expansion of the Dome open pit will augment underground production. As a result, annual gold production will increase to 315,000 oz. from the current 187,000 oz. Reserves in the expanded open pit total 1.7 million oz. gold. The construction phase, expected to begin this April, will create 350 jobs. When production commences in April, operation of the pit will result in 90-120 permanent jobs. Mill throughput will increase to 9,100 from 3,800 tonnes per day, while the cash production cost will be reduced to US$210 from US$227 per oz.
At Detour, an independent contractor will carry out the $10-million construction program, to be completed later this year. An underground conveyor and crushing system will be installed to gain access to ore west of and below existing workings.
The first phase of this expansion will extend the current mine life through to the year 2000, with production from a combined reserve-resource of 7.3 million tonnes grading 5.1 grams gold per tonne (containing 1.3 million oz. gold).
About 70,000 metres of underground drilling will further delineate and explore the resource. This second phase will extend the mine life an additional three years.
Average annual production at Detour is expected to be 168,000 oz., while cash production costs will be reduced to US$240 from US$250 per oz.
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