Musselwhite mine yields yellow metal

Placer Dome’s (PDG-T) 68%-owned Musselwhite mine in northern Ontario has poured its first gold.

Situated 120 km north of Pickle Lake, the mine is slated to produce 200,000 oz. gold per year for about 10 1/2 years. For the first year, the cash production cost is estimated at US$226 per oz.

The processing facility is being commissioned ahead of schedule. Initially, the project will operate as an open-pit mine, with conventional gravity recovery, cyanide leaching and a carbon-in-pulp circuit. The pit is expected to operate for about one year, while the underground mine is developed. Daily throughput is projected at 3,300 tonnes.

TVX Gold (TVX-T) owns the remaining 32% of the project, where proven and probable reserves are estimated at 6.6 million tonnes grading 5.6 grams gold per tonne, equivalent to 1.2 million contained ounces gold. Additional reserves, in the measured and indicated category, are estimated at 2.2 million tonnes grading 5.8 grams gold, equivalent to 420,000 oz. gold.