Operations at the Beaver Dam and Forest Hill gold mines, purchased by Western Mining Corp. late last year, are well below original expectations. Located in Nova Scotia, the properties were developed by Seabright Resources which was subsequently purchased by Australian-based Western Mining for $92 million.
During the first quarter of this year, the company reportedly produced 2,380 oz of gold. At the time of purchase, the mines were expected to produce 45,000 oz of gold per year from reserves of 600,000 tonnes grading 10 g gold per tonne (0.292 oz gold per ton).
During the first quarter, the operation was burdened by excessive dilution which resulted in an average mill grade of 0.108 oz gold per ton. At this rate, the mine will produce less than 10,000 oz of gold in 1988.
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