At the Golden Giant mine near Marathon, Ont., fracturing of wall rock at the 700-metre level of the production shaft has led Hemlo Gold Mines (TSE) to suspend operations until the situation is remedied.
The shaft does not appear to have sustained any structural damage, but the company has decided to shut down the mine to ensure safety. The fracturing is believed to have been caused by local stresses in the 1,146-metre shaft. Hemlo Gold hopes to resume production in about a month.
The 3-month strike at the mine, from June to September, caused a shortfall of 140,000 oz. in the company’s gold output for the nine months ended Sept. 30.
Earnings for the period amounted to $21 million on revenue of $116 million, compared with $49.6 million on $194 million for the same period of 1994. Earnings per share were 21 cents, compared with 51 cents a year ago. For the third quarter of 1995, Hemlo posted a loss of $2.3 million, or 2 cents per share.
The strike’s settlement, on Sept. 17, is not expected to have a significant effect on production costs.
Meanwhile, sinking of the main production shaft at the Holloway gold project, east of Matheson, Ont., continues apace. By the end of September, the shaft was 57% complete. Capital expenditures at Holloway constituted $16.1 million of Hemlo Gold’s total of $27.6 million.
The company incurred $5.6 million in exploration expenditures during the first three quarters of 1995 and has declared a dividend of 10 cents per share.
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