Shares of Jaguar Mining (TSX: JAG) plummeted after the Canadian gold miner said Monday it was temporarily shutting its Turmalina mine in Brazil after a nearby tailings pile failure.
Jaguar expects to restart the mine in less than a month, but didn’t provide an exact date. No one was injured, the company said.
The Satinoco tailings pile slumped, engulfing part of the mine site’s workings including maintenance areas near the shop, piping that feeds the filter plant, outdoor storage areas, and an emergency escape exit from the mine.
Shares of Jaguar Mining plunged 27% by market close yesterday and dropped another 2% on Tuesday morning in Toronto $2.61 apiece. The company’s market capitalization is $209.6 million.
The company said it is working with local authorities, including the Brazilian National Mining Agency, and the community surrounding the mine to ensure the situation remains under control.
Inspection
According to Jaguar, a visual inspection on Dec. 7 had identified areas of concern at the tailings pile. Mine personnel and nearby community members were subsequently evacuated before the slump occurred, the company said.
Officials estimated 134 residents were evacuated to local hotels, and the company has crisis management and support personnel on the ground, engaging with the displaced families.
The Turmalina underground mine is part of Jaguar’s MTL mining complex located in the state of Minas Gerais, about 130 km northwest of the city of Belo Horizonte. Last year, the mine produced 33,117 oz. of gold, accounting for about half of the company’s production.
Also part of the MTL complex is the 2,000-tonne-per-day processing plant at Turmalina, three satellite deposits (Faina, Pontal and Zona Basal), and the Onças de Pitangui project.
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