Miramar reports higher costs at Con

Production costs have increased at the Con underground gold mine near Yellowknife, N.W.T., reports owner Miramar Mining (TSE).

The company earned 29 cents per share, or $14.6 million, for the 9-month period ended Sept. 30, compared with 32 cents per share, or $10.5 million, in same period last year.

Miramar milled 336,000 tons grading 0.31 oz. gold per ton during the period to produce 92,228 oz. gold at an average direct cost of US$325 per oz. Direct operating costs during the same period in 1994 were US$281 per oz.

The increase in operating costs was attributed to higher power costs, as well as delays in achieving planned tonnage output from the newly opened C1/B3 refractory area of the mine.

Higher power costs relate to low water levels across the Northwest Territories which prompted the local power utility to impose surcharges.

The low water levels also prevented Miramar from operating its Bluefish hydroelectric plant at peak capacity.