The performance of the Colomac gold mine in the Northwest Territories continues to improve as the remote open pit operation uses up remaining fuel supplies purchased by owner NorthWest Gold (TSE).
NorthWest Gold, a 50% owned affiliate of Toronto-based Northgate Exploration (TSE), plans to shut the operation down this month until either gold prices improve, or the company manages to sort out its financial problems.
Having borrowed $90 million from a consortium of bankers to build the mine, NorthWest took a $161.8-million writedown on its resources properties last year. Northgate has also written down its investment in the project.
Meanwhile, Colomac, designed to produce 200,000 oz. gold annually, yielded 30,200 oz. of the yellow metal in the first three months of 1991 from 546,000 tons milled.
NorthWest says it is also processing an average of 6,100 tons per day, while the average grade of ore milled has increased to 0.060 oz. gold per ton from 0.057 oz. in the fourth quarter of 1990 and 0.054 oz. in the previous quarter.
In the first three months of this year, recoveries averaged 93% up from 92% at year-end. As no undue problems have been experienced with the mining and milling process, NorthWest expects to produce another 20,000 oz. by the time the mine closes.
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