McWatters cuts production costs

Delayed development at one of its two mines near Val d’Or, Que., translated into lower production for McWatters Mining (MCW-T).

Combined, the Kienna and Sigma mines cranked out 169,255 oz. in 1998, compared with 177,579 oz. in 1997. Both contributed roughly an equivalent amount, with slower-than-expected development of Kienna’s North zone resulting in the reduction.

On a brighter note, cash costs between the years dropped to US$255 per oz. from US$268 per oz. Sigma, however, remained a high-cost operation, averaging US$305 per oz. gold produced, as opposed to Kienna’s US$203 per oz.

In 1999, McWatters expects to produce 200,000 oz. at an average cash cost of US$248 per oz. The favorable forecast reflects the startup of the East Amphi open-pit mine, immediately west of Val d’Or, and improvements at the Sigma mine.