Alaska News

Plummeting gold prices won't disrupt Canadian arctic mine

The company behind the Meadowbank mine in Canada's eastern Arctic territory of Nunavut says the recent drop in the price of gold won't have any immediate impact on its plans or operations.

On Monday, the price of gold had its biggest one-day drop in 30 years. It's gone up a bit, but still hovers just under $1,400 US an ounce. Gold hit its all-time high in August 2011, just above $1,900 U.S. an ounce.

"We're going to be patient. Nobody's panicking," said Dale Coffin, a spokesperson for Agnico-Eagle.

"We certainly have a finger on what's going on. We're keeping an eye on the market, but we're looking at making sure all our operations are operating safely and performing at their maximum capacity and efficiency"

Coffin said smaller exploration companies will likely be hurt more by the low price of gold as it will be harder for them to raise capital.

"It may be quite difficult for those junior companies to get the necessary funds to get out there and discover new opportunities … so that's where it's a bit concerning as an industry, looking down the road and how can these small companies manage and survive."

Agnico-Eagle has been boasting its success at Meadowbank, saying production is up and costs are down.

Next week, the company will release its first-quarter results for 2013.

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