Low gold prices forcing closure of MacLellan mine

All employees have been given 14 weeks notice of termination, the company says. Mining and milling operations will continue during this period. After this, the mine and mill will be placed on care and maintenance and all exploration and development activity will cease.

Despite the negative news, the mill still might avert closure. LynnGold says it is in discussions with Manitoba Mineral Resources and Mingold concerning the development of the Farley Lake gold deposit. If an agreement is reached, ore from Farley Lake would be trucked to the MacLellan mill for processing.

Additional mill feed is also being considered from the Burnt Timber deposit, also within trucking distance of the mill. If feasible, the new projects would require an expansion of the mill.

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