Vancouver – Another illegal blockade on the road between the mine and mill site has prompted Glencairn Gold (GGG-T, GLE-X) to suspend operations at its Limon gold mine in northwestern Nicaragua.
The action by a small group of current and former employees is an attempt to force the company to rehire a number of former workers terminated in late-2005. Glencairn’s termination of these personnel has been upheld by the Nicaraguan government and the company has paid them all required severance.
The disaffected group belongs to the same union that blockaded the road in November-2005, and had signed an agreement whereby any future disputes be resolved under provisions in the collective agreement. The latest action has prompted Glencairn to seek government assistance in reaching a resolution.
The underground Limon gold mine, in continuous operation since 1941, employs a workforce of more than 400 and includes 1,000-tonne-per-day mill complex. In the first nine-months of 2005, Limon produced almost 31,000 oz. of gold at cash operating costs of US$347 per oz. The output came from 245,310 tonnes of ore processed grading 4.7 grams gold per tonne.
An ongoing underground development initiative is expected to provide a second source of ore at Limon, boosting operational results.
Glencairn owns 95% of the mine, with the unionized workers holding the remaining 5%.
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