The Copper Rand mine in Chibougamau Quebec will be no more.
Campbell Resources (CCH-T, CBLRF-O) says the mine will be shut down by the end of the year.
The underground copper and gold mine had been in production since early 2007, but the company has been trying for three years to make it a profitable operation, Andr Fortier, Campbell’s president and chief executive said in a statement.
But operating deficits continued to pile up quarter after quarter and as a result, the company has come to the sad conclusion that it can’t reach the production levels it needs to make the mine economically viable.
All development work and diamond drilling activities have stopped and mining for the remainder of the year will focus on just two areas that have already been developed.
Some 45 jobs are being cut immediately, bringing the workforce at the mine down to 169. That number will be slashed to just 50 by the end of the year.
“The decision to close the Copper Rand mine is an extremely difficult one, but we are convinced that this is the only reasonable course of action at this time,” Fortier said. “We will now be dedicating our resources to the ongoing development of the higher-grade Corner Bay project and operations at the Copper Rand mill and to pursuing other opportunities in the Chibougamau camp.”
Such other development projects had been largely ignored as the company focused on Copper Rand.
The mine’s resource estimate from September of 2006 put reserves at 1.4 million tonnes grading 2.8 grams gold per tonne and 1.76% copper.
In Toronto on Sept. 9, Montreal-based Campbell’s shares were off 18% or 1 to 4.5 on roughly 760,000 shares traded.
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