Canada’s top gold mines increase output in 1993

Although total Canadian gold output fell by nearly 6% in 1993 to 151 tonnes, production from the country’s top mines showed a marginal increase. Cumulative production last year from Canada’s top 12 mines rose by almost 1% to 2.81 million oz. This compares with output of just over 2.78 million oz. in 1992.

The largest increase in production was at the LaRonde mine, north of Cadillac, Que., where production jumped 13.3% to 152,356 oz. The increase was a result of higher head grades. The head grade has risen steadily to 0.26 oz. per ton in 1993 from 0.14 oz. in 1990. The mine also produced 9.2 million lb. of copper and 270,671 oz. silver in 1993.

Other significant production increases occurred at Placer Dome’s (TSE) Dome and Detour Lake mines near Timmins, Ont., and at Lac Mineral’s (TSE) Bousquet #2 mine near Val d’Or, Que.

Declining grades were responsible for the large drop in output at the Golden Giant mine near Hemlo, Ont. In 1993, gold production was 422,045 oz., a drop of 6.5% over last year. The average grade of ore mined was 0.36 oz. — considerably lower than in 1992, when grades exceeded the reserve average. An output of 410,000 oz. is forecast for 1994.

Detailed studies are planned to determine if the declining grades can be offset by higher production.

Even with significantly lower output, the Golden Giant deposit was still the lowest-cost Canadian producer, with an average operating cost of US$110 per oz. In contrast, the highest-cost producer in the group was the Detour Lake mine at US$250 per oz.

Output levels in the short term are expected to remain largely unchanged as there continues to be little in the way of new gold mine developments in Canada, although there are a few notable exceptions.

One of these is the Colomac mine in the Northwest Territories which was recently reopened by new owner Royal Oak Mines (TSE). Gold production in 1994 is forecast at 75,000 oz. and annual production is expected to be 170,000 oz. during the initial five years of mine life.

The other major development is the Eskay Creek gold-silver mine in northern British Columbia. This deposit is expected to begin production in the first half of 1995 at an estimated annual rate of 210,000 oz. gold and 9.4 million oz. silver.

Other major gold projects being readied for production include the Holloway deposit near Matheson, Ont., and the Troilus deposit north of Chibougamau, Que.

CANADA’S TOP 12 GOLD MINES

Mine Owner(s) Production (oz.)

1993 1992

1. Williams Homestake-Teck 492,000 496,920

2. Golden Giant Hemlo Gold 422,045 451,403

3. Campbell Placer Dome 300,472 298,829

4. Doyon Cambior-Lac 249,792 249,594

5. Lupin Echo Bay 217,504 214,482

6. David Bell Homestake-Teck 215,188 210,512

7. Dome Placer Dome 185,082 172,997

8. Bousquet #2 Lac 162,003 149,169

9. LaRonde Agnico-Eagle 152,356 134,474

10. Snip Cominco-Prime Res 149,475 153,402

11. Detour Lake Placer Dome 141,840 129,550

12. Con Miramar 119,318 120,000