After being in control for just over a year, Hemlo Gold Mines’ (TSE) new management team appears to be achieving its corporate objectives of making the company a low-cost producer and environmentally responsible operator.
At a recent analysts and investors meeting in Toronto, Hemlo president, Ian Bayer, gave an update on the company’s current producing mines and advanced exploration projects.
At the Golden Giant mine, Hemlo’s key asset, this year’s gold production is estimated to be 435,000 oz. at a cash cost of US$121 per oz. Production for 1993 will decline by around 10%, as lower-grade ore is mined. Development work at Golden Giant is continuing on mining blocks 4 and 5. Block 4, which will go into production in 1995, contains reserves more than 3.3 million tons grading 0.36 oz. gold per ton. Preliminary reserves for block 5 total 2.2 million tons at 0.21 oz.
Hemlo’s other gold production comes from its 55% owned Silidor mine, near Rouyn-Noranda, Que. Hemlo’s share of production for the first half of 1992 was about 20,000 oz. at a cost of US$268 per oz. Ore reserves at Silidor are 3.86 million tons grading 0.15 oz.
The company currently has two advanced development projects: the New World project in Montana, and the Holloway project near Kirkland Lake, Ont. Crown Butte Resources (TSE), in which Hemlo owns a 60% interest, is the owner and operator of the New World project.
Five deposits have been outlined on the New World property: the Como, McLaren, Miller Creek, Homestake and Fisher Mountain. Because of environmental concerns, only the latter three deposits, all underground operations, will be developed at this time. Permitting is expected to be completed by early 1993 and environmental studies will require an additional 12 months, with production slated for 1994. No cyanide will be used in the treatment of the ore.
Underground preliminary reserves are 8.8 million tons grading 0.21 oz. gold, one oz. silver and 0.75% copper.
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