Jaguar Mining (TSX: JAG) has suspended operations at one of its mines in Brazil following a failure at its tailings pile.
Operations at the Turmalina mine have been suspended, following a slump that occurred in the north wall of the associated Satinoco tailings pile. The pile, which consists of dry-stacked filtered tails and waste rock, failed on Saturday, with the company managing to evacuate personnel and nearby community members before the failure occurred.
Details on the size of the failure have not been provided, however the company indicating that certain infrastructure was impacted by the failure, including the maintenance area near the on-site shop, piping that feeds the filter plant, outdoor storage areas and an emergency exit from the Turmalina mine was covered.
A total of 134 nearby residents have also been evacuated and placed in local hotels.
The mine is expected to be closed for at least a month, with the timing of resumptions presently unknown. Officials from the company meanwhile are said to be working with local authorities as well as the Brazilian National Mining Agency.
Jaguar’s Turmalina mine last quarter produced 6,479 ounces of gold at an all in sustaining cost of $2,413 per ounce. The mine is the smallest operation in Jaguar’s portfolio in terms of production.
Jaguar Mining last traded at $3.65 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. 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.
