VANCOUVER — TMAC Resources (TSX: TMR; US-OTC: TMMFF) has slashed annual production estimates and suspended cost guidance at its wholly owned Hope Bay gold mine in Nunavut due to “processing issues” during ramp up.
The company is struggling with its daily throughput rates due to “frequent stoppages” needed to optimize mill recoveries, which have also resulted in lower average head grades.
TMAC cut Hope Bay’s annual production guidance for 2017 to between 50,000 oz. and 60,000 oz. gold. The operation was originally scheduled to generate between 100,000 oz. and 120,000 oz. gold this year.
“We were feeding low-grade material through for quite a bit of the second quarter. Now we’re feeding closer to ‘normal’ mine grade stockpile material. I don’t think we’ll achieve nameplate on recoveries by year end, but I expect that will have significant improvements,” TMAC CEO Catharine Farrow said during a conference call.
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