The companies involved in the Big Bell open pit mine in Western Australia recently announced that proposed development of an underground mine on the property will not proceed.
The mine is owned by joint venture partners, Placer Pacific and ACM Gold. Placer Pacific is owned 75.7% by Placer Dome (VSE).
Mining of the Big Bell open pit is expected to be completed in late 1993. The decision not to proceed with development of the underground portion was based on the results of a recently completed feasibility study.
Placer Dome said, however, that if the joint venture does decide to develop an underground mine at some point during the life of the open pit, it would be done as a continuation of the existing joint venture.
Big Bell is not considered to have been one of Placer Dome’s more successful operations among its recent crop of new gold mines. A new mining plan was implemented last July, following production problems associated with lower-than-anticipated grade and difficult drilling and blasting conditions.
The plan reduced the size of the open pit with a lower strip ratio and a reduction of waste removal costs. As a result, Placer Dome said cash operating costs were significantly reduced, and gold production is now targeted to average 115,000 oz. per year over the period from January, 1991, to February, 1994.
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