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Torex Gold temporarily halts El Limon-Guajes ops due to illegal blockade

Just a few days after achieving commercial production at the mine, Torex Gold Resources Inc. said April 4 that it temporarilysuspended operations at its ElLimon-Guajes gold project in Mexico until further notice due to an illegalblockade.

The blockade was initiated by three families demanding paymentsfrom the company for alleged environmental damages.

According to Torex President and CEO Fred Stanford, the companyprefers to suspend operations at the mine until the authorities re-establish lawand order in the area rather than submit to the demands for payments, which wouldset a precedent and make Torex vulnerable to similar threats.

The company also said the majority of the community has not supportedthe families that established the blockade and that community representatives havelodged legal complaints against their activities. Meanwhile, the authorities havebeen actively involved in resolving the situation.

Commercial production was declared at the El Limon-Guajes minein late March, after the operations ran for over 30 consecutive days at an averagerate of 9,470 tonnes per day.