Stung by weak gold prices and high operating costs, the Renabie gold mine near Wawa, Ont., will shut down its stopes permanently this year, says owner Renabie Gold Mines, a subsidiary of Corona (TSE). Renabie holds a 55% interest in the mine and mill which employs about 175 people and is operated by Corona under a joint venture between Renabie and 45% owner American Barrick Resources (TSE).
A decline in the price of gold and a decrease in the size of the orebody at depth, coupled with lower grades and increasing costs have rendered the remaining reserves uneconomic.
It is likely that the Renabie mine will be shut down by Sept. 30,” says Corona.
If the proposal to cease operations is carried out, distributions of gold to the Renabie Gold Trust (TSE) would cease after all gold in the mill circuits has been recovered. This year’s production is expected to total about 45,000 oz., and independent evaluation is planned to verify the estimated production after shutdown. The mine has produced more than one million ounces of gold since it began production back in 1947.
Corona also says it plans to amalgamate the Renabie unit with its wholly owned Corona-Hemlo subsidiary. The amalgamation is unrelated to the cessation of production at Renabie, the company says.
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