Hemlo mines pass their peak but years of production to go

After nearly a decade since their discovery, the three Hemlo mines are now passing their peak productive years.

The Williams mine, owned 50-50 by Teck (TSE) and Corona (TSE), will post a production decline this year to approximately 500,000 oz. In 1990, output hit a record 594,128 oz. gold, putting it in the same league as the defunct Kerr Addison and Hollinger mines of an earlier era in Ontario’s mining history.

Another Teck-Corona partnership, the David Bell mine, this year should match its 1990 output of 318,098 oz. But an analytical report published in May by Yorkton Natural Resources says a 23% decline will follow in 1992.

Hemlo Gold Mines’ (TSE) Golden Giant mine also posted a record yield last year of 441,717 oz. In the company’s annual report, it is stated production should fall to 420,000 oz. this year and level off in 1993 at an approximate annual rate of 360,000 oz.

However, it would be premature to begin making funeral arrangements. Cumulatively, reserves are still enormous. The Williams mine’s proven and probable reserves are 37.3 million tons at 0.19 oz. gold per ton. (In 1990, mill throughput was nearly 2.5 million tons.) The reserve figure has declined only marginally since 1987, although nearly 7.7 million tons have been mined during that period.

David Bell has a reserve of 8.2 million tons grading 0.363 oz. gold (and another 2.4 million tons of 0.31 oz. in the quarter claim it shares with Hemlo Gold). Annual mill throughput is 512,715 tons.

Unlike the stable reserve noted at the Williams mine, this operation’s reserves have declined. But it still has enough ore for another 15 years at the minimum.

The Golden Giant’s reserves, reported by the company in proven and probable oz. of contained gold, stand at 5.7 million oz. In 1990, 1.3 million tons were milled. Olav Svela is editor of The Northern Miner Magazine.