QUEBEC – The nosedive in the price of gold earlier this month is being felt at at least one large bulk tonnage producer. Osisko Mining Corp. of Montreal has announced plans to shrink its workforce by 6% over the next few months. President and CEO Sean Roosen said the company will focus its efforts on its producing Canadian Malartic open pit gold mine at Malartic.
At the Upper Beaver advanced gold project , near Kirkland Lake, ON, work on the shaft collar has recently been completed, but construction of the headframe and surface facilities has been put on hold. While the company reviews savings opportunities, it will save $50 million in capital outlays at Upper Beaver this year.
Osisko engineers are also seeking capital cost reductions at the Hammond Reef advanced gold project 170 km west of Thunder Bay, ON. So far they have trimmed $3.5 million. Meanwhile, the project will not be advanced further until the feasibility study is received later this year.
Spending at exploration projects in both Ontario and Mexico have also been cut.
Follow further announcements at Osisko.com.