With minable reserves nearly depleted, Placer Dome (TSE) has sold its Dona Lake gold mine to mining contractor Ross-Finlay for $2 million. The sale includes the mine, a 550-ton-per-day mill (south of Pickle Lake, Ont.) and 300 claims.
In recent months, the Val d’Or, Que.-based contractor has been responsible for much of the diamond drilling and underground development at the mine. Reserves at the end of 1992 stood at 132,000 tons grading 0.225 oz. gold per ton. In the first half of 1993, the operation produced 22,400 oz. gold at $204 per oz.
In an interview, Ross-Finlay President Blair Morton said he believes there is enough ore left in the deposit to sustain mining operations for an additional six to 12 months. Morton hopes to mine 50,000 to 100,000 tons of ore at or near the historical grade.
As part of the deal, Placer retains responsibility for reclamation of the tailings, while Ross-Finlay will look after rehabilitation of the mine and mill site.
Ross-Finlay is a subsidiary of Espalau, a Montreal-listed company primarily involved in the hotel industry.
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