VANCOUVER (miningweekly.com) – Persistent snowstorms that cut off access to junior miner Cerro Grande Mining’s high altitude Pimenton mine, in Chile, have meant the mine has been permanently shuttered.
Toronto-based Cerro Grande on Friday cited a lack of adequate working capital and a series of snow storms that affected operations as the main reasons for closing the 100%-owned mine.
All personnel have been taken out of the mine.
The company could not give a future date for when mining operations could restart.
Pimenton produced 4 256 oz of gold in the financial year ended September 30, 2016, down from 6 633 oz produced in the prior year. For the first quarter ended December 31, Pimenton produced 932 oz of gold.
The closure leaves Cerro Grande without an operating asset and it is currently investigating all alternatives for raising more working capital.