TROY Resources has deferred the closure of its Sandstone gold mine in Western Australia as gold prices remain strong.
The open-cut mine, which produces 600,000tpa of low-grade ore, was set to close in February 2009.
However, falling exploration costs and strong market prices have prompted the company to extend the closure date until around November 2009 and continue operations at the mine.
According to the company, the operation will produce 30,000oz of gold during 2009, with ore being mined from its Lord Nelson deposit.
The company pulled the pin on the Lord Henry deposit in December 2008 because of high production costs and low grade resources.
However, Troy says current gold prices have added value to the operation and made it ‘economic to trade’.
Up to 60 full time jobs have been retained by deferring the mine closure.
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