Equinox Gold Corp (TSX: EQX) (NYSE: EQX) this morning is learning first hand how important local relations are for mining operations. The company announced this morning that its mining operations at the Los Filos Mine in Mexico have been suspended since yesterday, September 3, as a result of a road blockage by members of the local community.
The blockade, which the company refers to immediately as being illegal, is a result of souring relations between Equinox and that of the nearby Carrizalillo community. It’s alleged that a community social collaboration agreement that was signed in 2019 has fallen out of compliance as a result of actions conducted by Equinox, and as a result the local community has had enough and has barred access to the mining operation.
The company as a result has been forced to reduce operations at the mine complex, with the operation currently experiencing a reduced workforce. Equinox is said to be in active discussions with community leaders currently to resolve the unspecified issues.
The Los Filos Mine complex consists of two open pit operations as well as an underground mine. With reserves of 4.4 million ounces of gold at 1.31 grams per tonne, the facility is expected to produce between 170,000 and 190,000 ounces of gold in the current fiscal year.
Equinox Gold last traded at $16.68 on the TSX.
Information for this briefing was found via Sedar and Equinox Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
