Weak gold prices are starting to take a toll on mining operations across North America, and heap leach mines appear to be no exception. For Alta Gold (NASDAQ), the combination of low gold prices and high operating costs have forced a cutback in both gold production and manpower at some of its mines near Ely, Nev. The company has already cut 230 people from its payroll since gold prices began declining this spring.
“It’s simply a matter of cash flow at this time,” explained Dan Bushnell, chairman. “When the gold market turns around, and I believe it will, then we can return to normal operations.”
Alta has curtailed mining at its Easy Junior mine, 45 miles west of Ely, although heap leaching is continuing on already loaded pads. The cutbacks here have resulted in the loss of 66 jobs.
The company intends to continue full operations at the Golden Butte heap leach mine, 40 miles north of Ely until year-end, when the company plans to resume mining at Easy Junior if the price of gold permits.
Alta has also cut back production at the Robinson Mining District, a gold mining operation which it has the option to purchase from Kennecott by Dec. 15. At this operation, the company has gone to two 10-hour shifts, four days a week and has suspended the mining and processing of its lowest-grade material.
Bushnell noted that several major mining companies have evaluated the Robinson district and expressed interest in joining forces to acquire the property.
On a more positive note, Bushnell said operations at the company’s Ward underground zinc mine and the related Taylor mill in Nevada are continuing at normal rates and may even be increased in light of continued strength in zinc prices.
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