TORONTO (miningweekly.com) – Road access to TSX-listed Argonaut Gold's El Castillo mine, in Durango, Mexico, has been blocked by a group representing local landowners since Wednesday morning, causing all mining activities to stop.
Argonaut said on Thursday that the blockade was illegal, advising that the group was seeking to renegotiate a binding land-use agreement through unlawful means that were inconsistent with agreements with the other ejidos (local groups) in the area.
The company stressed that it had a legal and binding agreement in place with local landowners, which was signed and recognised by the ejido, on behalf of local landowners, and the Mexican government in 2013, and was valid to 2025.
Argonaut was attempting to work with the group and the government to resolve this issue in a “mutually satisfactory manner”. The company had several agreements in place with ejidos in the area.
“We reaffirm our commitment to treat all local ejidos fairly and work with them in an open and transparent manner for the benefit of all local stakeholders, including the employees, the communities, the ejidos and the government,” the company stated.
According to Argonaut, metal production had not been impacted and it continued to operate the processing and leaching facility, as well as ensure that all environmental and safety commitments were met.
On a consolidated basis, the company produced 28 876 gold-equivalent ounces (GEOs) during the third quarter ended September 30, down 4% year-on-year.
El Castillo produced 17 297 GEOs, down 25% year-on-year, while the company’s other 100%-owned mine, La Colarada, located near Hermosillo, Mexico, produced 11 579 GEOs in the period. This positioned the company to achieve its full-year production guidance of 135 000 GEOs to 145 000 GEOs.