Gold Corp. (TSE:BZA) shares shed on Friday, lately down over 55 per cent after the company said it has decided to place its Copperstone mine in Arizona on care and maintenance until further notice, as miners struggle with unsustainably high costs amid declining commodity prices.
The decision was made in order to cut costs, while the company reviews operations with the aim of improving efficiencies, and as it seeks additional capital to fund the improvements so as to meet the designed capacity of the mine.
In its statement Friday, , which was previously in ramp-up phase at the mine, said that declining gold prices also factored into its decision to suspend mining and milling operations. Gold is on track to post its first annual loss in 13 years, taking a precipitous fall in the second quarter of this year.
"While the suspension of operations may be considered a setback in the company's goal of achieving commercial production at Copperstone, the company believes it is necessary in order to achieve that goal," it said further in the release.
"Operating costs have reached unsustainable levels for various reasons."
The company is in discussions with a number of potential financing sources, according to the statement, that could enable the miner to bring production at Copperstone up to design rates. It says that with more funds, the mine could perform at a consistent output rate, helping to reduce overall costs.
's 100%-owned Copperstone Mine sits within the Walker Lane mineral belt where it intersects gold provinces in Southern California and Western Arizona. Since announcing a feasibility report on the mine three years ago, it has fully permitted the project and developed an underground gold mining operation.
The company said it would try to keep its shareholders fully imformed of its decisions.
Shares of the junior gold company tumbled to as low as 2 cents this afternoon, from a previous close of 4.5 cents on Thursday.
That was in October, 2013.