BCD Resources has announced that it will close the Beaconsfield underground gold mine next year.
The company says that it will shut down at the end of June 2012 as "at today’s gold price it is not viable to mine below the current depth of 1210 metres".
BCD Resources CEO Peter Thompson explained: "Below the current base of the mine, gold mineralisation thins and further development is not viable. This has been confirmed by an independent consultant. The company will continue to review the mining plan and mine life should the gold price continue trending upwards."
This announcement comes nearly a year after the mine retrenched close to 100 workers in an attempt to make the mine profitable.
The Beaconsfield mine is synonymous with the underground collapse in 2006 that killed miner Larry Knight, and trapped Brant Webb and Todd Russell.
While the company had faced struggles earlier in the year, production from the Western Ore Zone at the Tasmania mine has returned the company to profitability.
BCD is also evaluating other processing and mining options, such as the treatment of gold tailings and the development of the Pinafore resource located near Lefroy, approximately 40km from Beaconsfield.
Thompson confirmed that BCD is also re-evaluating its Victorian copper and gold assets, and the re-utilisation of its Beaconsfield treatment plant, which is one of only three bacterial oxidation plants in the country capable of treating refractory gold ores.