McWatters aims to cut costs

A US$23-million investment program by McWatters Mining (MCW-T) is aimed at lowering operating costs at the Kiena and Sigma gold mines in Quebec’s Val d’Or camp.

The program is designed to extend the mine life of both operations to more than 10 years. It also will increase underground production at Sigma to 1,000 from 700 tonnes per day by July of this year, and to 1,500 tonnes by the year 2000.

McWatters acquired 100% of the producing mines from Placer Dome last September. Production from the date of the acquisition to the end of the year was 50,991 oz., at an approximate cash cost of US$253 per oz. and a total production cost of US$282 per oz.

During this period, Kiena produced 27,290 oz. at a cash operating cost of US$200 per oz. (total cost of US$239 per oz.), while Sigma turned out 23,701 oz. at a cash operating cost of US$313 per oz. (total cost US$332).

McWatters expects to produce 90,000 oz. gold from Kiena this year at a budgeted cash cost of US$220 per oz., and 93,000 oz. at Sigma at a budgeted cash cost of US$295 per oz