Williams top gold mine despite 75,000-oz. drop in production

Despite a significant drop in output at Canada’s top gold producer, the Williams mine near Hemlo, Ont., cumulative production from the nation’s 12 largest gold mines edged up slightly to 2.8 million oz. in 1991 compared with 2.7 million oz. in 1990.

Record-breaking producers included two of the Northwest Territories finest: Echo Bay Mines’ (TSE) Lupin mine at 217,000 oz. and Nerco Minerals’ Con mine at 123,000 oz. Agnico-Eagle Mines’ (TSE) LaRonde mine in northwestern Quebec also turned in a banner year, producing almost 117,000 oz.

But production from Northern Ontario’s rich Hemlo orebody, having reached its peak at the beginning of the decade, is now on the decline. With the exception of Hemlo Gold Mines’ (TSE) Golden Giant operation, which churned out a record 443,400 oz., the “big 3” suffered from declining grades in 1991. Production at the Williams and David Bell mines shared by Teck (TSE) and International Corona (TSE) fell by 75,000 oz. and 35,000 oz. respectively. Recording an average operating cost of US$99, David Bell was the lowest-cost producer among the top 12. Despite gradually declining production and increasing costs, the Hemlo mines are still the cheapest producers of underground ore in Canada.

New to the list is Lac Minerals’ (TSE) Bousquet 2 mine in northwestern Quebec. Ranked seventh, Bousquet 2 replaces Lac’s Macassa mine in Kirkland Lake, Ont., which was dropped from 11th position on the list after ground problems reduced overall production to 81,000 oz.

With the exception of the Campbell, Bousquet 2, Dome and LaRonde mines, output from the top-12 producers is expected to decrease in 1992. Production at the Williams mine is estimated to show the largest decline, dropping to 455,000 oz. in 1992 from 519,000 oz. in 1991 .

Under some threat of suspension are Placer Dome’s (TSE) Dome and Detour Lake mines. The company said earlier this year that if gold prices do not improve significantly, production at some of its high-cost operations may have to be curtailed. In 1991, Dome and Detour Lake had average production costs of US$312 and US$333 per oz. respectively, while gold averaged US$362 per oz. Also at risk of losing ground is Royal Oak Mines’ (TSE) Giant mine near Yellowknife, N.W.T., where a lengthy strike still rages. Having dropped from eighth to 12th place in 1991 as production from the Yellowknife tailings ceased, the mine will probably be bumped off the list altogether in 1992. Mine Owner(s) 1991 1990 Rank

1 Williams Int’l Corona/Teck 518,703 1

2 Golden Giant Hemlo Gold 443,400 2

3 David Bell Int’l Corona/Teck 283,128 3

4 Campbell Placer Dome 260,521 5

5 Doyon Lac/Cambior 257,271 4

6 Lupin Echo Bay 216,877 6

7 Bousquet 2 Lac 175,844

8 Dome Placer Dome 144,526

9 Con Nerco 123,000 9

10 Detour Lake Placer Dome 119,530 7

11 LaRonde Agnico-Eagle 116,831 12

12 Giant Royal Oak 102,335 8