GOLD MINE CLOSES: First Casuality of Lower Prices & Higher Costs

Drumlummon Mine

 

The historic Drumlummon Gold Mine run by U.S. Silver & Gold, is closing down all operations due to lower gold prices and higher costs.

According to U.S. Silver & Gold:

An orderly shutdown will begin immediately and is expected to be completed by the end of the second quarter.  A small, ongoing exploration program will be maintained and the Company will move equipment, inventory, and supplies to the Galena Mine Complex in Idaho. During the first quarter of the year, Drumlummon produced 21,044 ounces of silver and 2,161 ounces of gold at a by-product cash cost of $2,288.73 per ounce gold.

Of course this is a very small gold mine, but during its heyday, the Drumlummon mine located in Marysville, Montana, was one of the largest gold mines in the state.  From 1883-1910, the Drumlummon mine produced 568,898 oz of gold and 4,982,942 oz of silver.  The majority of the gold was produced between 1883-1892 at more than 1/2 oz a ton… or a staggering 16+ g/t.

 

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2 Comments on "GOLD MINE CLOSES: First Casuality of Lower Prices & Higher Costs"

  1. Did they elaborate on what the “higher costs” are?

  2. Hal, yeah it cost Drumlummon $2,288 an ounce to produce gold that quarter. With that sort of cost structure, they had to mothball the mine.

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