PERTH (miningweekly.com) - ASX-listed Kalgoorlie Mining Company has suspended operations at its Bullant gold project, in Western Australia, as the mine missed production targets and had high processing costs.

In a statement released on Thursday, Kalgoorlie said that the decision was made after a detailed operational and financial review of the Bullant project, which found that the combined effect of missed production targets and high processing costs meant that the only sustainable outcome was an immediate decision to place the operation on active care and maintenance.

CEO Chris Daws said that as a consequence, there would be an immediate reduction in the required workforce at site.

“The board regrets the need for this reduction, however, it remains the most feasible alternative to best preserve the value of the project,” said Daws.

However, he noted that the company would continue to assess its recapitalization options for the project and its asset inventory.

To date, Kalgoorlie has focused on developing the Bullant gold mine, which achieved its first ore sales in August of last year. At the end of December last year, the company received approval to install a crushing circuit at the project site, which had initially been planned for commissioning in the latter part of 2012.
 

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