Third of workforce laid off at Detour Lake

Placer Dome (PDG-T) has laid off almost a third of the workforce at its Detour Lake gold mine in northeastern Ontario.

The layoffs — part of a plan to reduce production costs — will affect 103 of 347 employees. They take effect Feb. 12.

Average production costs at Detour Lake were US$401 per oz. in 1996. The high costs were attributed to a change in continuity of the main ore zone, which had the effect of reducing underground productivity.

Placer expects the reductions in production costs will increase the viability of the QK zone, currently the subject of an accelerated exploration program.

The layoffs are expected to lower production in 1997 to 117,000 oz. from 147,000 oz. The company says the reduction will have little impact on the company’s 1997 target of 2.3 million oz. from all its operations.