Historic mine shutting down after gold price drop
Updated On: Apr 25 2013 02:42:19 PM MDT
U.S. Silver & Gold says it is shutting down the historic Drumlummon mine northwest of Helena because it costs more to produce an ounce of gold than it is worth.
Employees were notified Wednesday.
Drumlummon spokesman Darryl James says the shutdown of the mine at Marysville would begin immediately. The company expects to lay off 107 people at the mine and the milling facility in Philipsburg.
U.S. Silver & Gold says it plans to move its equipment, inventory and supplies to the Galena Mine Complex, a silver mine in Idaho.
The company says during the first three months of 2013 the Drumlummon mine produced just over 2,100 ounces of gold at a cost of nearly $2,300 per ounce. Gold closed at $1,431 an ounce on Wednesday.
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