SNOW LAKE, Manitoba Rising mine operating costs at the New Britannia gold mine may spell its doom. KINROSS GOLD (the operator and 50% owner) and HIGH RIVER GOLD MINES (50%) are re-evaluating the mine and its future operations.
The partners expect the mine will continue to operate at least until the end of 2004. They point to increased operating costs resulting from mining at deeper levels, a reduced strike length of the ore zones, and a flattening of the ore zones adjacent to the McLeod Road Thrust Fault (causing increased dilution) as factors in a decision that could result in closure. The New Britannia mine is budgeted to produce 85,000 oz of gold this year, compared to 107,000 oz in 2002 and 115,000 oz in 2001.
Both Kinross and High River have other producers in their portfolios. Visit www.hrg.ca or www.kinross.com to learn more.