Power problem idles Sigma mill

A fluctuation in power supplied by Hydro Quebec has forced a temporary shutdown of McWatters Mining‘s (MWA-T) Sigma-Lamaque mill in Val d’Or, Que.

McWatters says the fluctuation resulted in an electrical problem, which is preventing the normal start-up of the semi-autogenous-grinding (SAG) mill.

The company says that while the cause of the problem has yet to be determined, the mill’s motor was not damaged.

Repairs are ongoing, and the company expects to resume milling operations in several days. Open-pit mining operations continue.

Despite the setback, McWatters says that the mill is still expected to reach full production capacity of 5,000 tonnes per day during the fourth quarter of 2003. In early April, the mill hit its commercial stride running through an average of more than 4,000 tonnes of ore per day. The mill began its ramp-up in late November, after capacity was boosted to 5,000 from 3,000 tonnes per day.

Plans call for the production of 856,000 oz. gold at US$165 per oz. from 2003 to 2008. Mining will target 10.4 million tonnes of reserves running 2.67 grams gold per tonne. Production for 2003 is pegged at around 110,000 oz. of gold at an average cash cost about US$210 apiece.

McWatters recently acquired Soquem’s 40% stake in the Sigma-Lamaque mine and mill complex for cash and shares. Soquem acquired its stake for $15.8 million via a McWatters bail-out by the Quebec government last year. The bail-out left McWatters with a 60% stake.