1992 — A LOOK BACK — Placer ponders `super pit’ for Dome

Having completed an extensive surface exploration program at the Dome mine, Placer Dome (TSE) is now evaluating the possibility of creating a “super pit” on the gold property at Timmins, Ont.

The proposed pit area is reported to contain geological reserves of 2 million oz. of gold. Placer is reluctant to release tonnage and grade estimates until feasibility studies are completed. Further details are expected in early 1993.

Currently, 25% of Dome production is supplied by one open pit on the mine property.

The company is able to consider the construction of a super pit because mine production costs have been significantly reduced during the past two years. A new operating plan was implemented in late 1990 which has dramatically improved performance at the mine.

Under the new plan, the mine is processing higher-grade ore, and has increased mine production and gold output. All of this has been achieved with 53% fewer employees. Cash costs decreased to US$249 per oz. in 1992 from US$420 in 1990.

Since 1980, the Dome mine has moved from a medium-grade, medium-tonnage operation to a low-grade, high-tonnage operation while maintaining costs per ton at the 1980 level.

Production at the Dome mine for the first nine months of 1992 was 1.12 million tons grading 0.123 oz. gold per ton. A total of 131,320 oz. was produced at a cash cost of US$249 per oz., compared with output of 105,000 oz. at a cash cost of US$314 per oz. for the same period in 1991. The company has also reduced its cost-per-ton to $35 from $43.

Construction of a super pit will involve moving some of the surface facilities and decommissioning the No. 3 shaft.