EXPLORATION work at South Crofty tin mine in Pool may stop because of concerns over rising costs.
The mine has been under redevelopment for the last ten years but today one of the investors, Canadian firm Celeste Mining, said it could halt further work because of higher than anticipated costs.
In a statement the company said: "The company also announces its decision to review and evaluate cost cutting measures including but not limited to, temporarily halting its exploration and development activities at the South Crofty Mine.
"The strategic review is a result of deteriorating equity markets, the financial position of the company, operational complexities and higher than anticipated exploration and development expenses at the South Crofty mine.
"Management continues to actively engage strategic partners in an effort to explore alternative funding strategies, which may include a brokered convertible financing.
"If the company and its partners cannot agree on such cost cutting measures, the company may elect not to contribute further expenditures which could result in dilution to its interest in the South Crofty Mine."
A spokesman for mine owner Western United Mines said it would not be making any comments on the announcement this week.
