Operations at the Shakespeare Nickel Mine 70 km west of Sudbury, operated by Ursa Major Minerals, have been temporarily suspended, after the expiration of its processing agreement.
The company's contract with Xstrata Nickel expired Dec. 31.
“Our previous processing agreement expired in December 2011 and we have not been able to conclude a new processing agreement for Shakespeare ore,” CEO Richard Sutcliffe said in a news release.
“Since 2007, Ursa Major's mining operations have demonstrated the consistent quality and metallurgical characteristics of the Shakespeare deposit and contributed to substantially removing risks from the future development of the ore body,” Sutcliffe added. “The company is evaluating the best options for developing the Shakespeare project which is fully permitted for an onsite mill and related infrastructure.”
The release indicated that, if production resumes, Ursa would initiate the development of the higher grade Shakespeare East deposit. In 2011, Ursa completed more than 7,000 metres of drilling at the Shakespeare East deposit and an updated resource estimate is anticipated in early February.
The suspension of operations comes a week after three directors on the company's board resigned, with no indication when or if those board members would be replaced.
The change follows a period of difficulty for the company's board. Last summer it fended off a group of dissenters who sought to introduce a new board and gain control of the company. The group cited a poor showing on the TSX, fallen share prices and a lack of growth strategy as contributing to its lack of confidence in the board.
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