"116 jobs is a lot of jobs and most Endeavor people are local people," Mayor Lilliane Brady said. 

"It will have a roll on effect to our schools, hospitals and the town." 

Cr Brady said the downturn in mining towns is evident Australia wide.

"I went over to Perth recently and it's worse in Perth than it is in NSW," she said.

"The mines are doing what they can to hold on."

"It's a bad time for mining towns," she said.

Three businesses in the shire have closed down recently as well although Cr Brady denies this is reflective of the mining down turn.

"This is everywhere. Drive through Nyngan or drive through Wellington. It's not only mining towns this is happening (businesses shutting down). I guess everyone buys online these days," she said.

EARLIER: CBH Resources have released a statement to the media after announcing a cut in production at its Endeavor Mine in Cobar which will lead to the loss of 116 jobs. 

CBH said the cut was a result of the downturn in Zinc and Lead commodity prices and production would be reduced from 2015 levels of 64,600 tonnes to 10, 900 tonnes  of Zinc and Lead in Concentrate.

"With a mine life at Endeavor of between 2-3 years at current production levels and at  a time of historically low commodity prices, CBH considers it prudent to preserve the value of the remaining reserve in the ground.

"These changes, although temporary, will unfortunately affect employees and contractors at the Endeavor Mine with a reduction in the workforce of 116 people. This decision has not been taken lightly.

"In the coming days we will engage with all our employees and put in place support services to assist people who are affected as a result of these changes.

"Production at the Rasp Mine in Broken Hill will continue at current rates however, a cost reduction strategy has been implemented to minimise expenditure and optimise performance at the Operation.

"Capital expenditure will be reduced to “critical items” only, a salary freeze will be implemented immediately and discussions with key contractors and suppliers instigated to ensure the Rasp Mine remains viable in this currently depressed commodity price environment"

10.50am: Mass redundancies will take place at Cobar's Endeavor Mines, with staff informed during a meeting on Monday morning. 

The workforce from Endeavor Mine, run by CBH,  gathered at 10am to find out 116 people will lose their jobs, with at least 74 people finding out about their redundancy tomorrow. 

Staff are expected to find out who loses their jobs from their respective managers tomorrow morning. 

Workers are not expected to go back to the mine today.

Staff, who did not wish to be named, said they're in for an anxious 24 hours. 

More to come. 

Updated: this article originally stated 99 people will be losing their job. CBH has since confirmed 116 people will be losing their jobs.