TSX-listed Argonaut Gold expects its explosives permit for the La Colorada mine, in Sonora, Mexico, to be reinstated imminently and that it will ramp up to full operations by mid-July, the company reported on Friday, following a successful court appeal.
The Collegiate Tribunal, which is the arm of the State Supreme court overseeing the Judiciary court, has ruled to lift the suspension of the explosives permit at the mine and has directed the Secretary of National Defence (Sedena) to reinstate the explosives permit.
Once Sedena officially reinstates the explosive permit, the company will be able to resume blasting operations, allowing for full operations to continue during a judiciary legal process.
During the suspension, Argonaut continued to crush about 12 000 t/d, relying on free-dig material in the pit and ore stockpiles.
The company previously said that, should the explosive permit be reinstated by August 1, it should be able to produce between 165 000 and 180 000 gold-equivalent ounces in 2018.
Four individuals have brought a legal suit against Sedena and the Municipality of La Colorada, based on assertions that the explosive permit should not have been granted.