Make Kitco Your Homepage

Main access blockade disrupted McEwen Mining’s El Gallo operations in Mexico

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - McEwen Mining (NYSE: MUX) (TSX: MUX) reported today that activities at its El Gallo project in Mexico have been temporarily suspended as the result of an illegal blockade of the main access to the property by members of nearby communities.

According to the company' statement, "certain individuals" involved in the blockade believe that the annual payments and infrastructure improvements made to the local communities should increase significantly.

The company added that El Gallo has operated harmoniously with the local communities since mining started in 2012, having demonstrated a long-standing track record of supporting local communities.

In this context, the current situation is "surprising", noted McEwen Mining. The site remains minimally staffed to maintain appropriate safety and security, and the environmental systems. McEwen Mining is negotiating for a peaceful resolution to the issues.

El Gallo has been residual heap leaching since Q3 2018 and is expected to contribute 3-4% to the company's gold equivalent production in 2021.

McEwen Mining is a diversified gold and silver producer and explorer focused in the Americas with operating mines in Nevada, Canada, Mexico and Argentina. It also owns a large copper deposit in Argentina.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.