The last full year of operations at the Sigma underground mine was in 1998. After Q1 1999, McWatters Mining announced that they would be shutting down the mine immediately in order to focus on open pit mining, but they would continue with some selective underground mining on a trial basis. This is the reason for the significant drop off in production from 1998 to 1999. Underground mining after Q1 was very limited, and I believe the mine was completely shut down at the end of 1999.
You will clearly realize when looking at the numbers that the gold price was the primary reason the mine was unable to sustain itself back then in 1998 and 1999. Fortunately, investors are blessed to be in wonderful times for gold mining. A $680 US gold price allows for a lot of excellent possibilities.
The results were taken from news releases issued by McWatters Mining.
These performance results were strictly from Sigma underground mining (totally excludes any open pit results).
1998 Sigma underground results:
*production ounces - 53,593
*cash cost - $366 US
*gold price realized by McWatters - $299 US
1999 Sigma underground results:
*production ounces - 28,067
*cash cost - $349 US
*gold price realized by McWatters - $275 US
In the gold environment we are in, I’m sure people can use their imaginations to extrapolate the possibilities of their Century Mining investment, if management can get this thing even just partly cranked up again.
Let’s hope the company is able to design a plan to mine these ounces economically in today’s environment. They could also see if they can use some of the techniques Agnico-Eagle will be using at their Globex mine.
Let’s wait and see how it all turns out.
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