Escalating operating and capital costs have resulted in a small mine near Wells being put into temporary care and maintenance.
Osisko Development announced Thursday, June 16, that it would be temporarily closing its Bonanza Ledge II Mine while the company focuses on economic studies, approvals and permitting for the Cariboo Gold Project.
As many of 85 employees, all of whom will receive legally required severance packages and career transition support to help them find their next jobs, will be let go.
“These are talented, hardworking people, and we know this is tough news,” Osisko Development said in a statement.
Read More: District of Wells signs MOU with Osisko Development
“We are taking steps to help them transition to new opportunities, and the company is hopeful that when Cariboo Gold is permitted, many of them can be welcomed back.”
An environment assessment decision is in progress for the Cariboo Gold Project, an underground gold mine near Wells with a production capacity of 4,750 tonnes per day.
The Bonanza Ledge underground mine received provincial permit approval in October 2021 to expand, resulting in an approximate 18-month mine life of the Bonanza Ledge II project.
Mayor of Wells Ed Coleman could not immediately be reached for comment.
Read More: Bonanza Ledge mine near Wells to expand
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