Placer Dome Nears Completion of Musselwhite Underground Gold Mine Expansion

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas). Placer Dome Incorporated (NYSE:PDG) (Vancouver, BC) is nearing completion of an expansion at its Musselwhite underground gold mine, which will raise mine capacity by over 30% of its initial start-up capacity.

In order to achieve this goal, the company is constructing a $16 million underground crusher and conveyor system to increase ore delivery to the mill. AMEC plc (London, England) provided engineering, procurement, and construction management on the project. The company hopes to boost mine capacity up to 4,000 tons/day when the project is completed in July of 2002. Originally constructed with a 3,000 ton annual capacity, the Musselwhite mine has undergone several projects over the past few years to boost capacity.

Constructed at a cost of $170 million, the Musselwhite mine began operations in 1997. The mine is located approximately 100 kilometers north of Pickle Lake, Ontario in the North Caribou Greenstone Belt. The mine has an estimated ten years remaining before it is mined out. Placer Dome is the third largest gold miner in North America and fifth largest gold mining company in the world.