Safety problems continue at the Southland coal mine in New South Wales, Australia, where production has been suspended since the end of 2003 following an underground fire.
Owner Gympie Gold (GGD-L) ordered an evacuation after the mining contractor encountered unsafe conditions in a haulageway. Indications are that ther will be further delays and costs involved in bringing the mine back to a safe condition.
The mining contractor has decided to lay off its staff at the mine.
Gympie has been in voluntary administration since year-end as a result of the suspension of production at Southland. The administrators, accounting firm KPMG, have offered Gympie’s gold-mining subsidiary Gympie Eldorado for sale.
Gympie Eldorado operates the Gympie gold mine, 180 km north of Brisbane, which produced 9,820 oz. gold at a cash cost of A$470 per oz. in the three months ended last Dec. 31. The Gympie deposit and the satellite Partridge deposit had proven and probable reserves of 667,000 tonnes grading 7.5 grams gold per tonne at the end of June 2003.
Final offers for Gympie Eldorado and for Gympie’s interest in Australian-listed junior D’Aguilar Exploration were due on March 17.
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