Citing the need to cut costs, St Andrew Goldfields (TSE) will suspend underground mining operations at the Stock Township mine just west of Matheson, Ont., for two months.
In the meantime, a total of 49 workers at the mine will lose their jobs either definitely or indefinitely as St Andrew prepares for reduced production in the long term. The company says underground maintenance and rehabilitation, to be completed this summer, will cut costs even further.
Milling will continue throughout the summer using stockpiled ore from the mine and from the Goldpost Resources’ (TSE) joint venture operation in Hislop Twp., Ont.
The mine will start up again at the end of August, operating at a reduced rate pending improvement in the gold price.
St Andrew produced 27,295 oz. gold from the Stock Township mine in 1990. As of Dec. 31, 1990, proven reserves totalled 411,120 tons grading 0.173 oz. per ton to a depth of 1,000 ft.
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