7th Nov 2013 15:02
LONDON (Alliance News) - Fresnillo PLC Thursday said that a court hearing in Mexico has confirmed that the stay of order requested by the Ejido agrarian community over the lifting of suspended explosives permits will not apply to its Herradura and Soledad mines.
The precious metals miner, operating in Mexico, said the stay of order will only apply within the boundaries of the Ejido community, which includes the company's Dipolos mine.
On October 24, Fresnillo reported that the community had presented legal proceedings to try to impede the lifting of the temporary suspension of the explosives permit covering Dipolos as well as Herradura and Soledad, and that the Ejido had obtained a temporary stay order in its favour pending further review by the court in early November.
Explosives permits at the sites were suspended by the local magistrate after concerns regarding the effect of blasting on the nearby community.
Fresnillo said it is confident that the temporary suspension of the explosives permit covering Herradura and Soledad should be lifted in the coming days.
The company said it is evaluating the impact of the temporary explosives suspension on its 2013 gold production guidance after earlier reducing its full-year gold production guidance to 465,000 ounces.
Fresnillo shares were up 0.9% to 999.00 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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