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Eagle River moves to selective mining

Canadian Mining Journal Staff | January 1, 2005 | 12:00 am

ONTARIO – Gold production for 2004 will slightly exceed the forecast of 70,000 oz at the Eagle River underground mine 50 km west of Wawa, Ont. The mine is owned 100% by River Gold Mines Ltd. of Toronto. Last year was transitional for the mine, which was converting to selective mining methods. This will result in a reduction in the work force and a decrease in the cost of labour, development and milling.

The company forecasts an increase in grade and a decrease in tonnage and operating costs in 2005, with 70,000 ounces of production sourced entirely from the Eagle River mine.

Eagle River is entering its tenth year of commercial production with more reserves than when it started in 1995. There was a modest decrease in ore reserves at year-end 2004, but the company is optimistic it can replace reserves in 2005 with an aggressive diamond drilling program from the 580-m level drift, which is currently being driven.


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