Hemlo Mining (TSX: HMMC) poured 29,617 ounces of gold in the third quarter, a 6% increase from the second quarter as higher grade stopes at the Interlake zone offset a power outage that held back the mine’s planned ramp up.
The Hemlo Gold Mine processed 342,000 tonnes of ore during the three months ended September 30 at an average grade of 3.00 g/t gold, up from 2.62 g/t in the prior quarter. Mill recoveries improved to 95.0% from 94.3%, while mine production averaged 3,718 tonnes per day.
Interlake accounted for nearly all of the grade improvement, with 45,000 tonnes processed at 6.15 g/t gold, roughly double the 3.05 g/t mined there in the second quarter. Output from the larger Williams zone slipped to 21,688 ounces from 22,516 ounces, with grade flat at 2.53 g/t.
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Because Interlake carries a 50% net profits interest royalty held by Franco-Nevada, attributable production came in at 25,652 ounces. Attributable gold sold totalled 29,830 ounces.
The quarter was weighed down by the failure of an underground electrical substation serving part of the Alimak production area. The outage cut available power and constrained mining rates, forcing the company to re-sequence the mine plan and shift activity to other areas. Hemlo has since relocated and commissioned a substation from elsewhere in the mine, with a permanent replacement due in December.
“Despite operational challenges during the quarter, we delivered stable gold production with an improved grade profile compared to Q2 while continuing to advance key operational initiatives,” said President and CEO Jason Kosec.
Kosec pointed to a 35% increase in production drilling and a 13% rise in paste filling over the second quarter. Seven pieces of mobile equipment worth about US$8.5 million arrived during the period, bringing deliveries to 17 of 21 planned units since Hemlo acquired the mine in November 2025.
Year to date production stands at 92,239 ounces on a 100% basis and 80,539 attributable ounces. Hemlo has not issued formal 2026 guidance, describing the year as a transition following its move to an owner-operator model. Management has targeted throughput of 4,800 tonnes per day by year end, leaving the mine roughly 1,100 tonnes per day short of that mark through the third quarter.
Hemlo held US$144.8 million in cash at quarter end and moved to a net cash position of US$2.3 million, compared with net debt of US$93.0 million at the end of 2025. Full financial results are due November 9.
Hemlo Mining last traded at $5.29 on the TSX.
