An average cost of $120(US) per oz of gold produced is not good enough for Hemlo Gold Mines. The company, a subsidiary of Noranda Inc., believes it can drop that cost to $110 or lower.
During the first quarter of this year, production from the Golden Giant mine in northern Ontario averaged 2,480 tonnes per day at an average grade of 10.48 g per tonne. Recovery of gold in the mill was 94.6%, with a total production of 73,029 oz gold.
The company reports the rate of production during the quarter was lower than planned while the cost per ounce was higher than anticipated. The mine is still in the development stage and a mechanical breakdown is blamed for the shortfall in total production.
Hemlo reported earnings for the two months ending March 31 of $5.4 million (6 cents per share). Because of the company’s reorganization earlier this year references to production and operating costs are based on three months of operations, while the financial information reflects earnings for only the 2-month period.
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