More job losses as Silver Lake closes gold mill

Silver Lake Resources is set to cut more jobs as the gold miner closes its Lakewood Mill.

The move comes after the company announced plans earlier this year to place its Murchison mine into care and maintenance, resulting in 42 job losses.

Silver Lake said the mine will be closed by the end of July once the gold circuit had been recovered, with all available ore to be processed at the Randalls Mill 65km south east of Kalgoorlie.

"This maximises head grade at the higher throughput Randalls Mill and reduces unit cost per tonne milled and transport costs compared to processing at Lakewood Mill,” the company said in a statement.

It said once the gold circuit had been stripped from the Lakewood Mill, also expected to be completed this month, the mill will be closed. 

“Unfortunately, this will result in the loss of a number of employee and contractor positions.”

Silver Lake said it would cost $40,0000 a month to care for the mothballed mill, announcing it had received a number of “unsolicited expressions of interest” to use or buy the operation.

The company said it will conduct a review to assess its options with a decision expected by September.

In announcing the closure of Lakewood, Silver Lake revealed its gold sales for the year were up on expectations.

Sales from the Mount Monger operations totalled 172,838 ounces for the year ending June 30 2014, compared with guidance of 160-170,000 ounces.

Full year gold sales for the group totalled 217,349 ounces which included sales from the Murchison Gold Operation of 44,511 ounces.

The company said it is in the process of finalising its June 2014 quarterly report.

In March the company posted a $47 million loss for the six months to end of December.

Image: news.yahoo.com

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