Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s Barrick Gold (TSX:ABX) (NYSE:GOLD) could close its Golden Sunlight mine in Montana as soon as May, unless the company finds a way to keep the 44-year-old and nearly depleted operation in business.
Barrick is limiting mining to existing areas only, with a final new mill run to process gold ore scheduled in two months
Underground development has already ceased, and Barrick is limiting mining to existing areas only, it said. A final new mill run to process gold ore is scheduled in two months.
The gold giant plans to continue underground and surface exploration drilling, with a focus on the southern extension of the Sunlight vein. Barrick will also evaluate the potential to reprocess historic tailings, while conducting hydrological and geochemical studies to support ongoing water treatment and reclamation work.
In the coming months, the company will review the findings from these different work streams and determine the path forward for the operation, at which time a further update will be communicated.
Golden Sunlight currently employs 55 people and also has about 90 contracters.
Proven and probable gold reserves at the mine are estimated at 20,000 ounces, gold resources at 164,000 ounces and inferred gold resources at 84,000 ounces.
Comments
slvrizgold
Bear-trick is a major company with major assets. Why would they want to mine some worn-out depleted pipsqueak mine that wouldn’t even add 1 cent per share under the best of circumstances. Oh yeah, I remember why I have never invested 1 cent in Bear-trick in 15 years of resource investing except one time as a quick trade after they overpaid for Turd World Randgold. Tanzania, DRC, and other Turd World sh**holes. NO THANKS.