Eastmaque closing tailings project

Eastmaque Gold (TSE) has elected to close its Kirkland Lake, Ont., gold tailings reclamation and recovery project after extracting about 12,500 oz. this year.

While the 19,865 oz. recovered from the project in 1990 was the best performance since production began in 1988, Eastmaque was forced to take an $8.7-million writedown on the carrying value of its Kirkland Lake assets. As a result, Eastmaque Gold reported a net loss last year of just over $11 million or $1.11 per share.

Eastmaque said the decision to close the operation was based on several factors including low gold prices and the depletion of economic reserves. In 1990, when Eastmaque milled 852,718 tons of material, cash costs per oz. were running at US$321 per oz. and recoveries at 43.1%. Gold was trading recently at just below US$360 per oz.

The company says the shutdown will occur over a 6-week period.

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