A review of the Faro mine of Anvil Range Mining (ARO-T) has recommended that the lead-zinc mine remain closed until the market for those metals improves.
The review found that optimistic metal price forecasts, high mill and stripping costs, and low recovery rates contributed to the mine’s closure.
The mine produced lead and zinc between 1969 and 1982, and again between 1986 and 1993.
In 1994, Anvil Range acquired the operation, which is situated in the Yukon, following a feasibility study that assumed prices of US28 cents per lb. for lead, US$5.50 per oz. for silver and US$400 per oz. for gold. Under the feasibility model, zinc prices ranged from US39 cents to US77 cents per lb.
The metal’s market price in 1996 hovered around US50 cents.
The review reported that ore reserves were accurate, and that mill and stripping would decrease as mill performance stabilized and stripping ratios fell. Anvil’s board will review its options for Faro during the suspension.
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