The company said operating costs at the mine in the current year were $393(US) per oz, excluding capital costs for development and definition drilling.
The indefinite suspension is to take place over a 10-week period, and mothballing will begin after milling has been completed. Granges estimates that total gold production from the mine this year will be about 17,500 oz.
The Vancouver-based company, now headed by President Colin Kaiser, will also be applying to set aside the $17.5-million garnishing order obtained by its joint venture partner, Abermin Corp. (TSE).
If unsuccessful, the company stressed this would not have a material effect on its operations as the funds are not required for operations. However, the company noted it would restrict the availability of funds for further investments or acquisitions.
Granges intends to write off $6 million of the $6.3 million carrying value of its 100% interest in the Windflower gold property near Revelstoke, B.C., in its third quarter.
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