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Prices delay mine re-opening.

Prices delay mine re-opening

Last spring's drop in gold prices forced officials of Toronto-based Northfield Minerals to postpone putting a Kirkland Lake-area mine into production.

The company's Cheminis Mine was originally scheduled to go into production in the summer. However, company chairman Robert Cudney said the plans were altered when gold prices dropped to $340 U.S. per ounce. At press time the mine's start-up was being reconsidered after gold prices topped $400, due to the Middle East conflict.

"With the recent price surge we're now considering putting the mine into production," Cudney said.

According to the company chairman, officials were scheduled to meet last month to determine the site's immediate fate. Cudney noted the production costs at the site are estimated to be between $330 and $340 per ounce.

Once in full production, the site will employ between 40 and 60 workers.

The site, in which Northfield holds 100-per-cent interest, was acquired from GSR Mining during the bankruptcy sale of assets from Golden Shield Resources. Cudney said it has proven reserves of 300,000 tons.
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Title Annotation:Mining Report; Northfield Minerals
Author:Krejlgaard, Chris
Publication:Northern Ontario Business
Date:Oct 1, 1990
Words:176
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