The Con mine produced 117,116 oz. gold in 1990, establishing a new annual production record for the underground operation which has churned out gold for more than 50 years on the outskirts of Yellowknife, N.W.T. Today, Con is operated by a unit of Nerco (TSE, NYSE), which purchased the historic mine and surrounding land package in late 1986 from Cominco Ltd. Since then, Nerco has invested about US$50 million in capital improvements which have enabled it to increase production, improve efficiencies and lower production costs.
Last year’s exploration and development work is reported to have returned “encouraging results” which will enable the operation to record a significant reserve increase for the year.
But the big news this year is Nerco’s recently unveiled plans to build an autoclave circuit at the Con mine to treat pre-existing mining waste material and to produce additional gold from the arsenic wastes and from refractory ores.
Jason McKenzie, general manager, said the objective is to treat and stabilize the arsenic sludge created as a byproduct of gold production, 1948-1970. During this period, a roaster was operated at the mine to treat refractory ores. (Since 1970, ore has been free2Dmilling).
A public hearing was held earlier this year in Yellowknife to review the proposed pressure oxidation process which will involve the use of an autoclave installed adjacent to the mine’s existing mill by late 1992. The $19.4-million project is expected to result in the creation of 21 new jobs.
Nerco is a large producer of coal, oil and natural gas and precious metals in North America. In 1990, the company’s mineral segment contributed an operating income of US$10.9 million, a US$1.9-million increase over 1989 operating income, on revenues of US$112.2 million.
Nerco’s 1990 gold sales from all operations totalled 184,000 oz., compared with 199,000 oz. sold in the prior year. (Sales in 1989 included 24,500 oz. sold as part of an acquisition completed during that year.) The company’s estimated cash cost to produce gold in 1990 was US$257.76 per oz., compared with US$261.34 oz. in the previous year.
Nerco closed its Candaleria silver mine in Nevada late last year, and the company expects that its silver production will decline in the future.
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