Higher output for Hemlo Gold

Low-cost gold producer Hemlo Gold Mines (TSE) increased first-half output to 236,600 oz. from its two operating mines.

Production at the Golden Giant mine at the Hemlo camp in northern Ontario totalled 216,500 oz. at a cash cost of US$126 per oz. Hemlo Gold also claimed 20,100 oz. to its account from the 55% owned Silidor mine at Rouyn-Noranda, Que.

The average cash cost at Silidor was US$268 per oz., resulting in consolidated first-half cash costs averaging US$138 per oz., the Noranda-controlled company said.

Hemlo Gold said it will proceed with development of the Block 4 area at the Golden Giant mine. Block 4 is estimated to contain three million ounces gold and lies below the existing bottom mining level. Capital cost of the development program, which will take about 2.5 years to complete, is estimated to be $21 million.