Posted: Apr 25, 2013 9:14 AM by Melissa Anderson - MTN News
MARYSVILLE - Tanking gold prices are said to be responsible for the decision to stop operations at the Drummlummon Mine in Marysville.
Several of the 117 employees received a 60-day notice on Wednesday telling them that they will be laid off.
According to a spokesman for the mine, operated by U.S Silver & Gold, operations at the mine will go into a "care and maintenance" mode. That means the mine will keep on a small crew required to carry on with future DEQ treatment plans.
Darryl James, a consultant for the mine, said the WARN Act requires them to give 60 days notice to employees in order to take the next step.
He said in order for the mine to remain profitable, gold prices need to range between $1,500 to $1,800 an ounce. Gold is now around $1,400 per ounce, which is causing the gold mine to operate in the red.
James said under the new status, they will have to do some reclamation as well as a long-term water treatment, which will be determined by the Montana Department of Environmental Quality.