Torex Gold plunges after gas leak kills three at Mexican underground mine

Aerial view of the ELG complex. Credit: Torex Gold

Torex Gold Resources (TSX: TXG) says a fatal carbon monoxide gas leak at its El Limón Guajes (ELG) underground mine in Guerrero state, Mexico has claimed the lives of three workers. 

The company suspended operations pending an investigation, according to a statement. 

The incident, according to the Canadian miner, occurred during Thursday’s day shift at ELG underground, part of a larger mine complex that also hosts two open pits and a 13,000-tonne-a-day processing plant.

Torex shares plunged Friday, down nearly 13% to $27.89 apiece by early afternoon in Toronto. The company’s market capitalization is $2.4 billion.

“While the details are very limited at this time, we do know that a 32-year old male, a 36-year old male and a 39-year old male have lost their lives to carbon monoxide exposure,” Torex CEO Jody Kuzenko said in the release. 

Two of the workers mentioned were Torex employees, while the third was a contractor. A fourth contract employee was hospitalized but is expected to recover, the company said.

Mexico investigation

Mexican President Claudia Sheinbaum told Reuters on Friday that authorities are also reviewing the case, adding that she had asked for an increased inspection of mines.

The country’ new leader expressed concern that a Canadian company might have one set of standards for Mexico and another for its homeland. 

In addition to ELG, Torex is set to have another underground mine within Mexico’s Guerrero gold belt. The nearby Media Luna project is nearing completion with a link to the ELG complex. Together, they are expected to deliver 450,000 to 470,000 oz. of gold production this year.

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