NUNAVUT - Two and a half weeks ago Agnico-Eagle Mines of Toronto reported a serious kitchen fire at its Meadowbank gold mine near Baker Lake. The extent of the damage will have a negative effect on the company's 2011 production numbers.
The company now expects full year gold production at Meadowbank to be approximately 310,000 oz, at total cash costs of approximately $700/oz. This compares to previously announced full year guidance for Meadowbank of approximately 360,000 oz at cash costs of approximately $600/oz. For the entire company, full year 2011 gold production is now expected to be between 1.08 million to 1.15 million oz, compared to earlier guidance of between 1.13 million and 1.23 million oz.
Since the fire, the mine has been operating with a "substantially" reduced workforce and consequently at a reduced production rate. The mill has been treating low grade stockpiled ore at a rate of 6,900 t/d. In Q3 2011, a permanent secondary crusher will be commissioned to allow the mill to operate at its designed throughput of 8,500 t/d.
Temporary kitchen facilities have been delivered to the mine site, and Agnico expects to return to normal staffing levels of 450 people by the end of April.
Visit www.Agnico-Eagle.com for more information.
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