New mines opening across the country mark completion of successful

Last year a number of new mines saw their first production. Among them was Cheni Gold’s (TSE) Lawyers mine in the Toodoggone area of British Columbia, which came on stream in August. It will have an estimated annual production of 40,000 oz gold and one million ounces of silver. The mine, with 1.93 million tons of reserves grading 0.198 oz gold per ton and 7.08 oz silver, should be producing for at least 10 years.

Lawyers cost Cheni $57.4 million to bring into production, $14 million more than projected. The overrun was due in part to electrical problems in the mill that delayed startup by two months.

The Magnacon mine, held jointly by Flanagan McAdam Mines (TSE) (50%), Windarra Minerals (TSE) (25%) and Muscocho Exploration (TSE) (25%), is expected to produce 80,000 oz of gold annually from Ontario’s Mishibishu gold belt. The mine has reserves of 1.4 million tons grading 0.248 oz.

At Pickle Lake, Placer Domes’ (TSE) Dona Lake mine opened officially in June after pouring its first gold in February. The mine, expected to produce 1.2 million oz last year, has reserves of 745,000 tons grading 0.24 oz. Additional reserves at depth amount to 1.12 million tons of grade 0.17.

Cambior Inc. (TSE) opened the Beliveau mine, 15 miles east of Val d’Or, Que. A 4-year mine life is predicted for the mine which should produce 35,000 oz of gold per year from its reserves of 1.3 million tons of grade 0.1 oz. Estimated cost at the mine is $260(C) per oz.

The Redstone mine of Timmins Nickel (TSE) (51%) and BHP Utah Mines is a small but potentially rich nickel mine that officially opened in May, a month ahead of schedule. The 10 million lb of nickel that it was to produce in 1989 was worth $60 million. Reserves at the mine are 350,000 tons of ore grading 2.9% nickel. Concentrate is shipped to the Sherritt Gordon refinery in Fort Saskatchewan, Alta.

The Shebandowan nickel-copper mine of Inco Ltd. (TSE) reopened after a 3-year shutdown, spurred in part by soaring nickel prices. Situated west of Thunder Bay, Ont., concentrate from Shebandowan will be shipped to Inco’s Sudbury smelter for processing. With reserves of 3.3 million tons of ore grading 2.2% nickel and 1% copper, the mine has an expected life of four years.

Robert Friedland’s Galactic Resources (TSE) was enriched by the Ridgeway mine in South Carolina which opened last January. The 15,000-ton-per-day open pit, heap leach mine is owned 52% by BP Minerals America. Mine life should be 10-12 years for Ridgeway on 56 million tons of grade 0.032 oz reserves. Production was higher than expected while costs were held to about $163(US) per oz.

Although Aur Resources (TSE) was always in the news last year, many overlooked the company’s Kierens mine, 12 miles southwest of Val d’Or. It was the first full year of production from Kierens, where reserves should last for a decade. The mine was to produce 24,000 oz of gold last year at an estimated cost of $225(US) per oz. Proven and probable reserves are 360,000 tons of grade 0.29 oz.