Gold mining in northern B.C. has been hit hard by the decline in silver prices, as mines are struggling to get more money to continue mining the precious metal.
The B.A.C.-based Gold Mine Association said it’s already received about $1.1 billion in deposits from the sale of two mines in B.L.C., including the one in Lelu, but that will be less than half of what the company needed to continue operations.
“It’s just going to be more like the amount we got from our first deposit in the [B.C.] area,” said Jeff Pendergast, a partner with Pendergarris Gold Corp. He said the sale is the first of its kind in B., and it’s been in the works for two years.
Pendergarri’s mining operations include the three-mine B.M.A., the Gold Mine of B.E.B., and the Leluv-Luv Gold Mine.
Its mines also have production capacity in the Yukon and in the Northwest Territories.
For its part, Gold Mine has said it is trying to diversify its business, including diversifying into other metals and products.
Last year, B.P.T. agreed to sell its remaining stake in the B.S. Gold mine to China’s National Gold Corp., with the company now claiming an additional $8.6 billion in revenue and $13.9 billion in cash.
With files from The Canadian Press
