TSX-listed gold producer Argonaut Gold on Tuesday reported that the Judiciary Court hearing with respect to the company’s explosives permit for its La Colorada mine, in Sonora, Mexico, has been postponed and is awaiting imminent court scheduling.
This follows after the company last month appealed the original Judiciary Court decision to temporarily suspend the explosives permit to the Collegiate Tribunal, which is an arm of the State Supreme Court that is tasked with overseeing the Judiciary Court.
This appeal requests the Collegiate Tribunal to reinstate the explosives permit so that the company can blast material while the judiciary legal process continues.
With free-dig material in the pit and ore stockpiles, the company estimates it has sufficient ore to continue operations until the end of July at its budgeted crushing throughput level of 12 000 t/d.
Argonaut has thoroughly reviewed its 2018 consolidated production forecast and, under the assumption that the explosives permit is reinstated by August 1, it reiterates its consolidated production guidance of between 165 000 and 180 000 gold-equivalent ounces.
Argonaut continues to believe the legal action brought against the Secretary of National Defense and the Municipality of La Colorada is without merit.
The company is reassured by the support it has received, including that from members of the local La Colorada and extended Sonora community. Argonaut is taking every possible legal measure to prove its case and to reactivate blasting activities at its La Colorada mine as soon as possible.