Gold mine would see losses at today's prices
July 24
The Associated Press
FAIRBANKS, Alaska — A planned mine in Livengood would not cover expenses at today's gold prices, according to a feasibility report.
The
current gold price of about $1,340 per ounce is far below the estimated
break-even point of $1,500 per ounce, the report says.
The
report was released Tuesday by International Tower Hill Mines Ltd., the
company planning the mine, the Fairbanks Daily News-Miner
(http://is.gd/uLVtzV ) reported.
At current prices,
the mine would operate at a steep loss, with an initial price tag of
$2.79 billion to build the mine about 80 miles northwest of Fairbanks.
But
Tower Hill vice president Tom Irwin said there is plenty of promise to
the planned mine, which is expected to produce more than 8 million
ounces of gold.
"We are tied to the price of gold,
and at $1,500, we just barely break even," Irwin said. "This is a good
project, but we're not there today. Gold's cyclical, and we'll be there
some day."
Irwin
said much of the high price tag is because of high energy prices,
environmental protection measures and the need for a work camp.
Irwin believes gold prices likely will rebound.
Tower Hill will continue to work on permitting and engineering the planned mine, he said.
Information from: Fairbanks (Alaska) Daily News-Miner, http://www.newsminer.com
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