Canada invests $70m in Seymour Lake lithium project in Ontario
The lithium mine operated by Australia's Green Technology Metals could become the province's first lithium producer.
Shares of Jaguar Mining (TSX: JAG) plummeted on Monday after the Canadian gold miner announced the temporary shutdown of its Turmalina mine Brazil after nearby tailings pile failure had engulfed part of the mine infrastructure.
According to Jaguar, a visual inspection on Dec. 7 had identified areas of concern at the Satinoco tailings pile. Mine personnel and nearby community members were subsequently evacuated before the slump occurred and no injuries were reported, the company said.
However, material from the ensuing slump clogged off part of the infrastructure at the mine site, including maintenance areas near the shop, piping that feeds the filter plant, outdoor storage areas, and an emergency escape exit from the mine was covered.
Timing of the mine’s resumption is currently unknown, but Jaguar expects it to be no shorter than one month. The company said it is working diligently with local authorities, including the Brazilian National Mining Agency, and the community surrounding the mine to ensure the situation remains under control.
It is estimated that approximately 134 residents have been evacuated to local hotels, and the company has crisis management and support personnel on the ground, engaging with the displaced families, it said.
Shares of Jaguar Mining plunged 26.9% by market close Monday, trading at a near six-month low of C$2.67. The company’s market capitalization is C$211.7 million ($149.4m).
The Turmalina underground mine is part of Jaguar’s MTL mining complex located in the state of Minas Gerais, approximately 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.
