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.
Last week Silver Lake Resources (ASX: SLR) ceased mining at its Sugar Zone gold mine at White River, Ontario, saying it has hit the “reset button.” Both mining and processing activities are suspended.
The company says it plans to reset mining practices and upgrade the site logistics network, adding that both activities will support economic production and a long-life operation.
Second quarter production at the mine was 8,155 oz. at an all-in sustaining cost (AISC) of $2,209 per ounce.
This suspension follows an earlier three-week halt to mining and milling due to wildfires in the Wawa area. The fires damaged the power line, but it was repaired, and production resumed on June 15.
Already this year, Silver Lake has implemented several core low-capital infrastructure upgrades at Sugar Zone. It will now focus on a drilling program designed to improve knowledge of the orebody. Three dedicated exploration drives are to be driven to facilitate 93,000 metres of drilling.
The company has a capital budget for Sugar Zone of about C$30 million for exploration, infrastructure and maintenance next year.
At the end of 2022, the Sugar Zone mine had resources of 17,000 measured tonnes grading 1.8 g/t gold (1,000 contained oz.), 4.7 million indicated tonnes at 8.1 g/t gold (3.0 million contained oz.), and 543,000 inferred tonnes at 7.1 g/t gold (1.8 million contained oz.)
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philmontinotenda mukunga
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