The ink was barely dry on the deal to combine Tahoe Resources with Lake Shore Gold Corp. when company officials outlined plans to boost gold production in Timmins.
Tony Makuch, president of Tahoe’s Canadian operations, as well as Tahoe executive chair Kevin McArthur and Tahoe president and COO Ron Clayton, spoke in Timmins about their goal to increase gold production at the Lake Shore Gold Division from about 180,000 ounces of gold to 250,000 in four years.
“That’s going to be achieved through a number of growth projects,” said Mark Utting, Tahoe’s vice-president of investor relations. Combining the assets and resources of two strong mining companies to create an even stronger entity enables growth to move faster, he predicts.
At the company’s Bell Creek Mine, northeast of Timmins, where Lake Shore produced about 40,000 ounces of gold last year, Tahoe intends to recommission and sink the currently unused shaft from a depth of 290 metres to well below 1,000 metres.
“Maybe as deep as 1,400, but we have to determine that exactly,” Utting said. “That’s going to give us access to a very large resource at depth and … the potential to double production,” he said.
South of Bell Creek, in a joint venture with Goldcorp Inc., the company is the exploration operator on the Whitney Project, an area of former producing gold mines, including the high-grade Hallnor Mine. Over 30,000 metres of diamond drilling has yielded very encouraging results.
“We’re looking at the model of developing an open pit that would eventually transition to underground mining,” Utting said. “That’s another thing that we’re aggressively working on.”
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