Westmin says Premier operating at breakeven

After a rocky start down the road to production, operator Westmin Resources (TSE) is reporting an improvement in mining operations at its 50.1% owned Premier gold mine near Stewart, B.C. The company said continued improvements resulted in a break- even situation for the month of March, and more progress is expected as improved procedures take effect.

The mine, accessible by road, began operations in the spring of 1989 and went into commercial production early this year. Westmin’s partners are Pioneer Metals (TSE), which owns 40% of the mine, and Canacord Resources (TSE) with a 9.9% interest.

Several initiatives were recently implemented by Westmin to improve the struggling operation. These include re-optimization of the Premier open pit, using “the 1989 cost experience” and adjusted prices for precious metals which resulted in a higher cutoff grade being used to define ore.

Westmin also increased the milling rate, a move to lower milling costs on a per-tonne basis and allow for the profitable mining of incremental ore within the new pit design. Plans are also under way to mill higher-grade underground reserves.

In addition, an accelerated waste stripping program at the Premier pit was contracted out so that Westmin crews could concentrate on grade control through efficient mining and removal of ore and associated waste.

Operating statistics for the first quarter of 1990 reveal that 137,583 tonnes were milled grading 2.46 grams (O.07 oz.) gold and 62.74 grams (1.7 oz.) silver per ton. Recoveries averaged 90.9% for gold and 42.30% for silver. A total of 10,347 oz. gold and 101,457 oz. silver was produced during the period.