Agoracom

With gold prices having dropped 20 per cent in the last month, Goldcorp has decided to close its Timmins-area Pamour open pit operation indefinitely.

Other factors have also played a role in the decision, such as the rising costs of energy and operation as well as lower-than-expected grades. Cash costs have doubled at the site in less than two years.

The work will officially be suspended mid-way through 2009 following the completion of the current phase of mining.

The Pamour mine is one of three that make up the Porcupine mine project, along with the Dome open pit mine and mill, and the Hoyle Pond Mine. The operations produced 300,000 ounces in 2007.

The 160 employees working on Pamour will be likely be moved to the other local operations, with half being kept for maintaining the mill and mining ore from stockpiles.