Production levels are slowly getting back to normal at the Placer Dome (TSE) Dome gold mine here. The 82-year-old producer is bouncing back from a bitter 5-month strike by the United Steelworkers of America.
Mine Manager Bob Perry told The Northern Miner that current production levels are running at about 2,300 tons of ore per day, based on December figures. Prior to the strike that began May 7 last year, the daily production rate was 3,750 tons.
“We’re assessing our situation day by day,” Perry said. “We hope to get our levels back up to 3,750 tons as soon as possible, but I can’t say when that might happen.”
Perry could not predict whether the mine would be successful in reducing its production costs to US$300 per oz. from US$345 with its slimmed-down workforce.
“We’re operating with 386 employees for the time being,” he said. Prior to the strike, the mine had almost 700 workers.
Meanwhile, at the nearby Paymaster gold project of Placer and American Reserve Mining (ME), a dewatering program of the old mine workings has been completed.
The Paymaster, taking in 1,700 acres in Tisdale and Deloro twps., is 37.1% owned by American Reserve and 62.9% owned by Placer.
American Reserve reported drilling and drifting work “into virgin and very highly prospective ground” will start in late February.
The companies are hoping they will be able to identify additional ore zones where a 1988 drill program revealed encouraging drill intercepts.
In addition to the exploration program, Perry said the companies will undertake a feasibility study to help in determining a decision on production.
Tentative plans call for processing of the Paymaster ore at the Dome mill.
Placer is funding the work program under a joint venture agreement worked out in 1989. During its working life, the Paymaster mine produced about 1.2 million oz. gold.
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