TORONTO (miningweekly.com) – A group of demonstrators have “illegally” blocked the main access road to the Fortuna Silver Mines; the San Jose silver-gold project, as well as the nearby San Jose del Progreso town, the firm reported on Thursday.
The group, which ranges from 10 people to 50 people, is mainly comprised of people from outside the immediate are of the project, Fortuna said.
“The demonstrators include only a small fringe group from the San Jose del Progreso community itself.”
The company is working with local, state and federal authorities to resolve the blockade.
Last year, Vancouver-based Minefinders halted development and construction several times at its Dolores mine, in northern Mexico, after protesters claiming to represent the local community blocked access to the site and threatened employees and contractors.
Construction was finally completed after the company received support from the state government of Chihuahua, and a police presence on site.
Fortuna expects the San Jose project to produce around five-million silver-equivalent ounces a year, and plans to make a construction decision by the end of the third quarter of this year.
Earlier this month, the company presented its 'Manifiesto de Impacto Ambiental' to the Mexican environmental authorities, and Fortuna is also advancing with engineering studies for the development of the deposit, including mine and processing plant design, tailings dam engineering, as well as evaluating power and water supply alternatives.
The company has already secured all the land required for the project and is in the “advanced stages of negotiation of a collaborative agreement” with the local community.
TSX Venture Exchange-listed Fortuna currently produces silver, lead and zinc from its Caylloma mine in Peru.
Shares in the company slid 5,9% on Thursday, to C$0,96 apiece by 11:37 in Toronto.
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