Australian Rains Shut Down Pegasus Mine

Torrential rains in Australia’s

Northern Territory have stalled gold production at the Mount Todd Mine of Pegasus Gold Inc.

Pegasus spokesman John Pearson said the area received 10 inches of rain in a 12-hour period last Thursday. The downpour washed out a 1,000-foot section of conveyor that transports crushed ore to the leach pads, and cut off overland access to the mine site.

No injuries were reported.

Helicopters have been used to get workers to the mine, and replacement sections of conveyor are expected to be in place within the next two weeks.

The floodwaters themselves are expected to dissipate quickly, but the water has diluted the solution applied to ore to extract the gold.

Pearson said the company expects first-quarter production at the mine to drop by 12,000 ounces. However, the loss will be made up over the rest of the year, he said.

Mount Todd produces 120,000 ounces of gold a year. The mine is operated by Zapopan, a 55-percent owned subsidiary of Spokane-based Pegasus. The company produces a total 450,000 ounces of gold annually from properties in the United States and Australia.