In addition, the company is planning to move the equipments, inventory, along with supplies of the mine to Galena mine complex in Idaho, while continuing an exploration program at the site and the surrounding areas.
Following the termination, the mine will be placed under maintenance and care.
Commenting on the mine closure, US Silver & Gold president & CEO Darren Blasutti noted that the Drumlummon mine is not
economically feasible with gold prices faltering.
"We have been working very hard since the beginning of the year to reduce costs and increase productivity at the mine, and while we expected to see improvements over the course of 2013, current gold prices and forecast gold production do not warrant continuing our operations there.
"The shutdown is prudent to preserve Drumlummon’s gold and silver resources until economic circumstances merit their extraction," Blasutti explained.
During the first quarter of 2013, Drumlummon mine produced 21,044oz of silver and 2,161oz of gold at a by-product cash cost of $2,288.73 per oz gold.
