Printer Friendly
The Free Library
23,421,980 articles and books


TVX Gold Inc. Mineral Hill Mine Placed under Care and Maintenance.

TORONTO--(BUSINESS WIRE)--Sept. 3, 1996--TVX GOLD INC.(TSE, NYSE, ME: TVX)--TVX Gold Inc. today announced that its wholly owned subsidiary, TVX Mineral Hill Inc., will suspend its mining and milling operations at the Mineral Hill mine in Montana effective immediately.

TVX Gold stated that the continued losses and capital expenditures necessary to continue the current operations at Mineral Hill are not justifiable. TVX Mineral Hill will, however, continue the surface drilling program at Crevice Mountain to enable the company to properly assess this resource which may justify mining on this project in the future. For these reasons, the mine, mill and associated facilities are being put on a care and maintenance basis for the time being.

The decision to suspend operations at Mineral Hill will result in a charge to third quarter earnings of TVX Gold Inc. of approximately US$29 million ($0.18 a share), including provision for future site reclamation.

Production at the mine has decreased as a result of mining lower grade ore and an ongoing shortfall in mill feed from the main Mineral Hill mine. As a result, cash operating costs at the mine have risen to US$535 on a year to date basis. Year to date production amounted to approximately 17,200 ounces of gold. Contributing to these problems have been the delays encountered in the Crevice tunnel drive, principally due to unexpected water inflows.

The majority of the current workforce of 138 employees will be laid off. TVX Mineral Hill is working with the employees in respect of the lay off and assisting in outplacement.

CONTACT: TVX Gold Inc.

Ed Baer, 416/366-8160

http://www.tvxgold.com
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Sep 3, 1996
Words:276
Previous Article:Ray Vecci appointed executive vice president and chief operating officer at Tower Air.
Next Article:CSC selected to provide technology services to National Institutes of Health.
Topics:



Related Articles
Madsen Gold Corp. plans a return after 15-year absence from mining.
TVX Gold board approves development of Pachicutza mine in Ecuador.
TVX Announces Brasilia Mine Expansion.
TVX announces first quarter results.
TVX Announces Second Quarter Results.
TVX announces third quarter results.
TVX Gold Inc. announces 1996 results.
TVX Gold Inc. - Further Update on Skouries Project.
TVX announces first quarter results.
TVX Announces Third Quarter Results.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters