Toronto-listed Orvana Minerals’ share price fell 9% on Monday morning after the company reported a temporary stoppage at its El Valle plant, in Spain, following an openpit wall failure that impacted on the tailings storage facility (TSF).
The rock fall occurred at a legacy openpit wall at El Valle and the fallen material had impacted the east sector of the TSF.
However, no structural damages occurred, no individuals were harmed and no environmental damage had been identified, Orvana stated.
CEO Juan Gavidia said that plant operations should restart in the following days.
“Underground mining operations continue stockpiling ore until processing resumes,” he said.
Gavidia said the legacy openpit wall sector, where the failure occurred, had been under review in the past, which caused the relocation of a district road running at the top of the wall in question. With the district wall relocated, the company was working to design a definitive geotechnical wall treatment for the long term.
Orvana noted that underground facilities were unrelated to the legacy openpit wall, so mining activities would continue operating under normal conditions. Plant facilities were also physically unrelated, except for tailings pumping circuits.
The company’s stock fell to C$0.40 a share, giving the precious metals miner a market capitalisation of C$54.65-million.