Unless exploration yields a big discovery around Agnico-Eagle Mines’ (TSE) Joutel Division north of Val d’Or, Que., the aging Eagle and Telbel gold mines are likely to close by April, says President Paul Penna.
Agnico has already laid off about 65% of its 280 workers at Joutel, Penna says. If the division shuts down, 100 more jobs will be in jeopardy. In the meantime, the Eagle West deposit will continue to provide low-cost ore as miners dig another 50-100 ft. out of the open pit. After entering production last May, Eagle West boosted Joutel’s 1991 production to an estimated 70,000 oz., an increase of 10% over 1990 output.
But ground problems at Joutel’s underground operations, particularly at lower depths, are growing increasingly difficult to manage. Today, Joutel is processing ore at a rate of 800 tons per day, or just 45% of capacity. Cash operating costs have edged up from an average of $356 per oz. in 1990, to an estimated $365 in 1991.
“The ground problems are what have really hurt us,” said Penna during a telephone interview.
Armed with a substantial exploration budget ($1.8 million in 1991), Agnico’s geologists hope to outline new reserves within the 80,000 acres that surround the mine property. In late 1990, a similar exploration drive hit the Eagle West zone, a 400,000-ton deposit grading 0.26 oz. gold per ton. The Eagle mine has been in production since 1974, while Telbel dates back to 1984. In mid-1990, the Joutel division poured its one millionth ounce of gold.
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