Big losses push Henty gold mine closure closer

FINANCIAL results have backed up Unity Mining’s decision to close its Tasmanian Henty gold project next year if more resources are not found.

FINANCIAL results have backed up Unity Mining’s decision to close its Tasmanian Henty gold project next year if more mineable resources are not found.

Unity’s 2013-14 results show the company generated a gross loss of $7.2 million which after interest, exploration, corporate and other non-cash expenses resulted in a net loss of more than $52 million.

Sales revenue also fell due to a fall in the gold price and less production at the mine, near Queenstown.

The average gold price for the year was $1419 an ounce.

The company spent $13.6 million last year on exploration trying to find more gold.

The mine, which employs more than 100 people, is due to transition into care and maintenance late next year.

Unity managing director Andrew McIlwain said any significant discoveries in its regional tenement package may lead to a re-evaluation of Henty’s future.