Mining operations at the Renabie gold mine near Wawa, Ont., will cease permanently as early as Aug. 4 and no later than Sept. 30, says Renabie Gold Mines, a subsidiary of International Corona (TSE).
A decline in the price of gold combined with a decrease in the size of the orebody, lower grades and higher costs have made the mine uneconomic, the company says.
Renabie, which has produced over one million ounces of gold since it started up in 1947, is a 55-45 joint venture between Renabie Gold and American Barrick Resources (TSE). The partners have agreed to return the property and its associated mineral rights to the Chapleau game reserve, subject to federal and provincial government approval.
The Renabie Gold Trust, whose only source of income is a variable percentage of gold produced at the mine, will continue to be paid on all remaining production, including gold recovered from mill circuit.
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