Henty gold heading for care and maintenance mode unless another lode is found

PRODUCTION will stop at Tasmania’s only gold mine at the end of next year if more ore is not found.

Underground miner Amelia Gallagher operates a diamond drill at the Henty Gold on the West Coast of Tasmania

PRODUCTION will stop at Tasmania’s only gold mine at the end of next year if more ore is not found.

The news that Unity Mining has reviewed its mine life schedule and will put Henty on care and maintenance if exploration does not uncover another lode comes as workers at Mt Lyell copper mine, in Queenstown, wait to hear when -- and if -- they will go back to work after a rockfall underground.

Henty employs about 160 workers. Half live on the West Coast, while the rest drive in for work but live elsewhere.

Unity Mining told the Australian Stock Exchange this morning it had reviewed Henty’s future and, at current mining rates, the gold reserves would be gone by the end of 2015.

But mining could continue if more gold is found.

“While the company’s current plan includes the eventual suspension of gold production from the Henty mine, Unity’s goal is to restart or continue operations should additional, sustainable reserves be delineated,” the company said in its statement to the ASX.

Unity took over the mine in 2009 and has invested heavily in exploration in a bid to extend the mine’s life.

But while mineral resources remain broadly unchanged at 292,000 ounces, recent drilling has not converted resources to reserves in line with expectations based on historical results.

Mining started at Henty in 1996 and the operation only had an expected life of four years.

By 2009, Henty had produced about 1.2 million ounces of gold and was expected to close the next year.

Under Unity’s ownership, Henty has produced a further 250,000 ounces and it should yield another 50,000 before the planned suspension of production.