Torex gains access to blockaded Mexico mine

Torex Gold regained access to its El Limón-Guajes (ELG) mine in Mexico despite an ongoing blockade.

Torex officials, supported by the CTM union, were able to reach the mine site via a road used during construction, the company said Monday in a release.

Access to the Guerrero state gold mine has been blocked since November 3 by supporters of the national mining-metallurgy union SNTMMSSRM, who want to wrest representation from the CTM, which was elected by workers.

The road used by the company to access the mine site crosses land owned by the Río Balsas Ejido landowners cooperative, and is not readily accessible by the blockaders, Toronto-based Torex said.

SITE INSPECTION

Gaining access to ELG has allowed Torex to draw up plans to restart operations if security of the site can be assured, the company said.

Two of the larger communities, Nuevo Balsas and Valerio Trujano, have publicly supported the company and asked the Guerrero state government to intervene to lift the blockade.

"We are optimistic that progress is being made in getting the operations restarted, and look forward to completing the ramp-up, finishing the SART plant, and getting back underground into the Sub-Sill area," CEO Fred Stanford said.

Since gaining access, Torex has also conducted an inspection of the mine site and drawn up maintenance plans.

Torex has said it supports a government-sanctioned process to allow workers to vote on union representation. The timing of a vote is expected to be decided at a meeting on January 30.

PRODUCTION

ELG produced 241,000oz gold in 2017, prior to the blockade. Torex previously cut production guidance for the year to less than 300,000oz from 350,000-380,000oz previously, as a result of the blockade.

Torex also announced that CFO Jeff Swinoga will be leaving the company. His departure is effective January 12, but he will continue to serve as acting CFO on an interim basis until his replacement is announced.