Torex Gold’s ELG underground mine resumes operations following fatalities

Torex Gold Resources (TSX: TXG) says it has resumed operations at the El Limón Guajes (ELG) underground mine in Mexico while an investigation continues into a carbon monoxide leak that killed three workers last week.

“While the full investigation is only just beginning, early indications are that the exposure was an isolated incident in an area of the mine that was being prepared for ventilation following a stope blast,” CEO Jody Kuzenko stated in a press release Monday.

According to Kuzenko, two workers went into a restricted area where carbon monoxide was present, and in an effort to rescue their colleagues who suffered exposure, two others entered the area as well. Three of the workers passed away as a result, while the fourth was hospitalized and is now at home recovering.

The company has already started an investigation into the incident, as have Mexican authorities.

In response to the incident, Mexican President Claudia Sheinbaum last week asked Labor Minister Marath Bolanos to increase inspections of mines.

“Because it can’t be that some standards are applied by Canadian companies here (in Mexico) and others (by Canadian companies) in Canada,” Sheinbaum told Reuters.

Torex’s Kuzenko said that findings from all audits and investigations will be used to reinforce safety protocols as required.

The 24-hour stand down at ELG, according to Torex, would not impact its 2024 production guidance, as well as its development of the Media Luna underground mine nearby.

Shares of Torex Gold rebounded from last week’s rout following the incident, up 5.7% to C$29.76 apiece by 1 p.m. EDT. The Canadian miner’s market capitalization is C$2.56 billion ($1.81bn).