Faced with a diminishing orebody,
The mine is now scheduled to close down beginning in the last quarter of the year, and the production target for 2004 has been scaled back to 33,000 oz. from 68,000 oz. The companies do expect it to have a positive cash flow up to the time closure begins.
In the first quarter of 2004, the mine produced 13,400 oz. at a total cash cost of US$422 per oz.
New Britannia has seen diminishing production as the remaining reserves are in a flattening and thinning area of the orebody. Throughput has decreased and dilution has increased as the flatter zones have been mined. The mine produced 70,000 oz. gold in 2003, down from 107,000 oz. in 2002 and 24% short of its plan. Its total cash cost rose to US$329 per oz., from US$315 in 2002.
Since startup in November 1995, New Britannia has produced 785,000 oz. Previously, between 1947 and 1957, it had produced just over 500,000 oz. The modern incarnation of the mine won two national John T. Ryan Trophies, presented for mine safety by the Canadian Institute of Mining, Metallurgy and Petroleum.
The partners are discussing plans to continue exploration in the Snow Lake area, with a view to keeping the New Britannia mill busy.
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