TORONTO (miningweekly.com) – An illegal blockade at TSX-listed Argonaut Gold's El Castillo mine, in Durango, Mexico, has ended after the company and local community leaders struck an accord.
Mining activities at the mine stopped on October 21, when a group representing local landowners blocked access to the mine.
Argonaut on Monday said a definitive agreement would be ratified by the company and community members in the “near future”.
“We reaffirm our commitment to treat all local ejidos (local communities) fairly and work with them in an open and transparent manner for the benefit of our shareholders and all stakeholders, including the employees, the communities, the ejidos and the government,” Argonaut stated.
Argonaut noted that the interruption had not affected metal production, with the company having continued to operate the processing and leaching facility, while ensuring that all environmental and safety commitments were met.
On a consolidated basis, the company produced 28 876 gold-equivalent ounces for the third quarter ended September 30, down 4% year-on-year.
El Castillo produced 17 297 gold-equivalent ounces, down 25% year-on-year, while the company’s other 100%-owned mine, La Colarada, located near Hermosillo, Mexico, produced 11 579 gold-equivalent ounces in the period.
The company expected to produce between 135 000 and 145 000 gold-equivalent ounces in 2015.