Torex Gold (TSX: TXG) has seen its mine shut down by federal authorities following the deaths of three individuals at the mine last week.
The single asset producer has seen the Director General of Mines under the Federal Ministry of Economy serve notice that operations at Torex’s Morelos property are to be suspended on a temporary basis. The suspension is said to be in connection to an investigation that is being undertaken at the El Limon Guajes underground mine in connection to an incident on December 5 that claimed three lives.
The incident saw carbon monoxide gas exposure immediately kill two employees and one contract at the underground mine, with a fourth contract employee that was in the area now recovering from the incident at home after a hospital stay.
Sponsored · Cambria Gold Mines
“Officials from the Mining Unit are expected to arrive to our operations on Tuesday and they will receive our full cooperation. We will work with officials to expedite all information they require to allow for the re-start of operational and project activities,” commented CEO Jody Kuzenko on the suspension.
The suspension follows the company yesterday indicating that operations at the underground mine had resumed, stating the event was an isolated incident that occurred in an area of the mine was that was being prepared for ventilation after a stope blast.
An internal investigation is said to be ongoing. Torex has also indicated that full year 2024 production guidance is unchanged at this time. The mine is currently projected to produce 460,000 to 480,000 gold equivalent ounces this year.
Torex Gold last traded at $29.87 on the TSX.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
