The suspension of operations at the Red Lake gold mine in northwestern Ontario was responsible for a jump in cash production costs, Goldcorp (G-T) reports.
The mine ‘s production for the second quarter and the six months ended June 30 was 9,476 oz. and 24,178 oz., respectively, compared with 10,480 oz. and 30,049 oz., respectively, a year ago.
The cash cost per ounce in the second quarter rose to US$429, from US$417 in 1995. Goldcorp attributed the increase to the disruption caused by the strike at the mine that began in late June.
The key issues in contract negotiations with the mine workers, who number about 250, are an increased work week and the contracting of outside workers.
In a release, Goldcorp officials state that resolution of the strike may be “some months away.”
Meanwhile, mine planning and engineering are progressing towards the company’s objective of increasing annual production to 150,000 oz. by 1998.
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