As a result of lower than expected head grades and higher than expected operating costs, joint venture partners Placer Pacific and ACM Gold have revised their mining plan for the Big Bell mine in Western Australia. The open pit will be revised from the originally planned depth of 1,000 ft. to 790 ft. below surface. As a result of the decrease in depth, the stripping ratio drops markedly; to 6-to-1 from 12-to-1.
The revised open pit ore reserve estimate is 8.7 million tons grading 0.066 oz. gold per ton. Reserves under the previous plan were estimated at 10.4 million tons grading 0.10 oz. gold.
Gold production for the period 1990 through February 1994 is expected to be 493,000 oz. Placer Dome (TSE), with a 37.9% indirect interest in the deposit through its holding in Placer Pacific, will have a 187,000-oz. share of the production.
As a result of the change in pit design, the original mining plan for the deposit’s underground reserves will also be modified. A new feasibility study for the proposed underground mine is expected to be completed by the first quarter of 1991. Currently, underground reserves are estimated at 8.8 million tons grading 0.10 oz. gold.
Placer notes that it is reviewing the financial impact of the modified mine plan and expects that a partial writedown will be necessary.
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