Gold mining giant Goldcorp Inc. ( GG ) has temporarily halted operations at its Los Filos mine located in Guerrero State, Mexico, subsequent to its unsuccessful efforts to settle a negotiation with the Carrizalillo Ejido over the renewal of the occupancy agreement that expired on Mar 31, 2014.
However, certain activities will continue to be in operation during this suspension in order to maintain site security and meet the environmental compliance obligations.
In the meantime, Goldcorp will continue to be in discussions with Ejido representatives to quickly come up with a solution that would resolve the issue and safeguard the long-term sustainability goal of operations amid a lower gold price environment and significantly higher Mexican tax obligations.
The Los Filos mine, which produced 94,000 ounces of gold in the fourth quarter of 2013, up 1.3% year over year and 28% sequentially, directly employs more than 2,600 people from the surrounding communities and has created an estimated 10,000 additional jobs as a result of the mine's presence in the region. In 2013, gold production from Los Filos was 332,400 ounces.
On Mar 28, Goldcorp filed a National Instrument 43-101 technical report pertaining to its 100% owned Eleonore project in Quebec and its 40% owned Pueblo Viejo mine in Central America.
As of Dec 31, 2013, the Eleonore project contained 4.03 million ounces of proven and probable gold mineral reserves (19.3 Mt at 6.49 g/t) and 4.10 million ounces of inferred gold mineral resources (13.25 Mt at 9.63 g/t).
The Pueblo Viejo project contained 6.46 million ounces of proven and probable gold mineral reserves (61.9 Mt at 3.25 g/t) and 0.33 million ounces of inferred gold mineral resources (3.31 Mt at 3.11 g/t) as of Dec 31, 2013. The mine also contained 40.72 million ounces of proven and probable silver mineral reserves (61.9 Mt at 20.46 g/t) and 2.16 million ounces of inferred silver mineral resources (3.31 Mt at 20.27 g/t).
Goldcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the mining sector include AngloGold Ashanti Ltd. ( AU ), Golden Star Resources, Ltd. ( GSS ) and Richmont Mines Inc. ( RIC ). While AngloGold carries a Zacks Rank #1 (Strong Buy), Golden Star Resources and Richmont Mines hold a Zacks Rank #2 (Buy).ANGLOGOLD LTD (AU): Free Stock Analysis ReportGOLDCORP INC (GG): Free Stock Analysis ReportGOLDEN STAR RES (GSS): Free Stock Analysis ReportRICHMONT MINES (RIC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research