Wednesday, March 14, 2012

Mundo suspends mining at Torrecillas

PERTH - ASX-listed Mundo Minerals has suspended underground mining operations at its Torrecillas gold project, in Peru, as heavy rains and flooding hit the area.

The Torrecillas mine has suffered some flooding, and all personnel have been evacuated through internal escape routes, the company said on Tuesday. No injuries were sustained as a result of the floods, and all personnel have been accounted for.

The miner further noted that no damage had been sustained to the operation, as mobile equipment had been relocated to higher levels in the mine.

Access to the mine was now available for clean-up and rehabilitation of the decline, and the work was to be undertaken over the next 72 hours. However, Mundo noted that production at Torrecillas could be delayed for up to seven days to enable the clean-up work to be completed, and to make repairs to the mine access road, which was damaged by the flooding.

Mundo recently declared a maiden Joint Ore Reserves Committee-compliant resource of 120 000 oz for its flagship Torrecillas gold project.

Meanwhile, the company’s share trading on the ASX would be suspended until a comprehensive update on the Brazilian operations and the closing of an equity capital raising for its Peruvian operation was completed.

Source: Mining Weekly