Vancouver — A wholly owned subsidiary of Miramar Mining (MAE-T) and the Federal Department of Indian Affairs and Northern Development (DIAND) have finalized an agreement to extend the mining life of the Giant gold mine near Yellowknife.
“This agreement benefits all parties involved,” says Miramar’s CEO, Tony Walsh, “DIAND realizes lower annual holding costs as a result of sharing holding costs with an ongoing operation, Miramar continues to provide incremental ore to its Con milling facilities.”
Under the terms of the amended agreement, Miramar will continue the operation as a source of supplemental mill feed for its nearby Con mill beyond December 14, the date that Miramar previously announced it would return the mine to DIAND. Beginning Dec. 15, DIAND has agreed to fork out $300,000 per month towards environmental compliance and holding costs. This amended agreement will remain in effect for as long as Miramar continues to operate the mine. The move saves 50 jobs.
Miramar continues to be free from all environmental liabilities related to previous operations at the mine and the reclamation security provisions of the existing agreements between Miramar and DIAND will continue.
The Giant mine is expected to contribute 25,000 oz. of gold to Miramar this year. The combined Giant and Con operations are expected to produce more than 125,000 oz. of gold in 2002. Cash operating costs are slated to come in at less than US$240 per oz.
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