Weak gold markets have left
Early this year, Lenora reported that full-scale development of a 4,000-tonne-per-day gold project was not “practical” in light of weak prices and equity markets. This conclusion was based on production from the Box and Athona deposits.
The company then announced plans for a 3-to-5-year operation based only on the smaller Box deposit. Cash costs were estimated at below US$200 per oz. The operating plan was based on the extraction of 4.3 million tonnes from the Box open pit, at a stripping ratio of 1.4-to-1, to produce a total of 130,000 oz gold.
The higher-grade material (above 2 grams gold per tonne) would be treated by continuous vat leaching after crushing, while the lower-grade material (between 0.8 and 2 grams) would be subjected to seasonal heap leaching. However, even the reduced operating plan has encountered financing and permitting difficulties. Permitting has taken longer than hoped, and financing has been hampered by the weak gold market.
Unable to meet the June 1 deadline for the start of this year’s program. Lenora has shelved its development and production plans for 1999. Should financing and permits be obtained this year, equipment could be sent to the site next winter or during next summer’s barging season.
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