Tuesday, 30th January 2007 (2574 views)

BMA Gold is set to cease production at its mine at Twin Hill, Queensland, beginning in March and has also announced an updated corporate strategy.

Resources in area two at the property have been downgraded from 277,000 tonnes at a grade of 21.6 grams per tonne for 193,000 ounces to 214,000 tonnes at 10.9 grams per tonne for 75,000 ounces.

Located west of Mackay and 120 kilometres away from Clermont, the Twin Hill mine is set to become the subject of aggressive exploration work in order to attempt to justify the presence of a mine at the site.

Steve Bartrop, market analyst from research group Stock Resource, told Australia's ABC that the mining company can no longer afford to send extracted gold 280 kilometres away to be processed: "The economic viability of the mine has now been called into question."

Both mining operations and underground exploration could get back on track at the 309 project should sufficient levels of new ore sources be discovered, BMA Gold has announced.

 

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