The Kerr mine was a fixture at Virginiatown, Ont., since 1938 but low gold prices forced the mine to close and operator Golden Shield Resources into bankruptcy. Golden Shield bought the mine in 1987 for $38 million and the mine yielded more than 31,000 oz of gold in 1988. Since its opening, more than 10 million of oz of gold were mined at Kerr from 40 million tons of ore.
Bachelor Lake Gold Mines’ (TSE) long-suffering project at Desmaraisville, Que., was another casualty. At a unit cost of $390(US) per oz, the 7-year-old mine was uneconomic. Since its opening in 1982, Bachelor Lake produced 121,160 oz.
LynnGold Resources (TSE) closed the MacLellan mine in Lynn Lake, Man., in November because of costs as well as grade and dilution problems. The mine reached only 80% of its production estimates and was uneconomic at a cost of $390(US) per oz.
The unprofitable and problem- plagued Tartan Lake mine of Granges Inc. (TSE) was also closed. The mine produced 17,500 oz of gold in 1989 at a cost of $393(US) per oz.
The closure of two of Ontario’s last iron mines was announced last year by Dofasco Inc. (TSE). The Adams mine near Kirkland Lake and the Sherman mine near Temagami will both be closed, affecting 700 workers.
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