Mining company Klondex announces 'immediate reduction' of workers, operations at Manitoba gold mine

The international mining company that owns an eastern Manitoba gold mine will be cutting back operations and workforce at the site effective immediately, according to a Tuesday news release.

Klondex Mines Ltd.announced "animmediate reduction of underground mining operations and workforce" at the True North mining complex nearBissett, Man. about 165 kilometres northeast of Winnipegon its website on Tuesday.

"We regret the implications these actions will have on our workforce and other stakeholders but must ensure the long-term sustainability of the Company," said Klondex president Paul Huet in the written release.

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The company acquired the43,000-hectare complex in January 2016. According to the release, it decided to cut back operations at the mine because it didn't make as much money as expected in 2017.

"Following an extensive review of recent operational performance at True North, the Company has decided to limit underground mining to areas already developed. Once these areas are depleted, underground mining will be suspended," the release states.

After the developed areas have been mined, Klondex said the mine will be placed on "care and maintenance status," at least until metal prices are higher.

Last year, the mine was scheduled to produce between 35,000-45,000 ounces of gold; instead it produced about24,000-27,000 ounces, the release says.

Klondexalso recently acquired another property, called Ogama-Rockland, 30 kilometres away from True North.

"True North and the recently acquired Bison Gold Resource properties continue to be valuable assets and we are taking the necessary steps to build the foundation for their long-term success within theKlondexportfolio," Huet said in the release.

CBC News requested information about the number of job losses and when people will receive notices, but did not get an answer Tuesday evening.