The project, which produced 25,000 oz during the first five months of 1989, is 51% owned by Camindex Mines, a 91%-owned subsidiary of MVP Capital Corp. of Toronto. The other two partners are Cambior Inc. (TSE) with a 26% interest, and American Barrick Resources (TSE) with 23%.
High operating costs and other problems have plagued the project since it went into production in 1984. During the first quarter of this year, for example, low temperatures helped keep output down and costs up.
The second quarter has seen improvements. Camindex President Richard Brissenden says that in April and May, production increased and average operating costs were less than $345(US) per oz.
“Despite these recent improvements, however, the decision was made to suspend operations because the mine plan for the months ahead includes mining through a lower grade area, requires the diversion of Valdez Creek and capital expenditures of $6 million(US),” Brissenden said. “These expenditures are being postponed pending gold prices which would economically justify the activity.”
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