Canadian Mining Journal

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GOLD PRODUCTION Doyon Reorganization Cuts Throughput, Jobs

QUEBEC Montreal-based CAMBIOR INC. is reorganizing its Doyon gold operation near Rouyn-Noranda in hopes of restor...


QUEBEC Montreal-based CAMBIOR INC. is reorganizing its Doyon gold operation near Rouyn-Noranda in hopes of restoring the mine to profitability. As part of the reorganization, the mining rate will be reduced to 700,000 tonnes/year (from 1 million tonnes) and 130 jobs will be eliminated.

Cambior says these changes are necessary due to a gradual increase in operating costs and rock mechanic constraints. Ground stability issues in May caused extensive damage to the main ramp and disrupted the development and production schedule for a four-month period while the ramp was repaired. Subsequent analysis indicated that some production domains near infrastructures should be delayed until the last years of exploitation, and the mining rate between the 8th and 12th levels should be slowed for a more stable and predictable sequencing of stoping activity. The new Doyon mining plan will focus on higher-grade areas of the mine. Average grade from the underground mine starting in 2005 is estimated at 5.5 g/t Au and the gold production contributed by underground will be 120,000 oz/year.

The cost of restructuring the Doyon operation will be $2.5 million, says Cambior. The company will offer some of the laid-off employees jobs at its Mouska and Sleeping Giant mines. Early retirement is also an option.

For further information contact Robert LaVallire, manager of investor relations, at 450-677-2699.


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